LondonMetric Property has disposed of an office and distribution warehouse for £11.6m.
The REIT sold a 21,000 sq ft office in Leicester for £5.7m at a net initial yield of 6%. The office is let for a further nine years to My Home Move.
The office is the first disposal made from LondonMetric’s recently acquired Mucklow portfolio. It bought the Midlands-focused urban logistics REIT in May for £414.7m.
LondonMetric also sold a 84,000 sq ft distribution warehouse in Doncaster for £5.9m at a net initial yield of 7%. It is let to Croda for a further two years.
Andrew Jones, chief executive of LondonMetric, said: “The Leicester office is the first disposal from the recently acquired Mucklow portfolio and we are in active discussions on further disposals from the office portfolio.
“Following our recently announced forward funding of Croda’s new long-let distribution hub, we decided to monetise its existing facility, which has two years remaining on the lease.”
FSP acted for LondonMetric on the office in Leicester; JLL advised on the Doncaster warehouse.
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