LondonMetric has sold a portfolio of four multi-let Midlands industrial estates to Hines for £40.5m.
The sale of the 435,000 sq ft portfolio reflects a net initial yield of 6.2%.
The properties, in Birmingham and Rugby, comprise 47 units and generate £2.7m of rent annually, with a WAULT to first break of 2.9 years.
The Kingshill, Redwood Park and Shenstone estates, as well as Triton Park in Rugby, were bought by LondonMetric as part of its Mucklow acquisition in June 2019, for an allocated price of £30.9m. The sale results in an ungeared IRR of 13%, in line with March 2023 book value.
LondonMetric has now disposed of £194m of former Mucklow assets, equating to 35% of the original portfolio and generating a 26% uplift against allocated cost.
Chief executive Andrew Jones said: “These assets have delivered returns materially above our initial expectations. Looking forward, we will continue to focus on aligning the portfolio to NNN lease assets that can deliver secure income and growth without incurring dilutive operational costs.”
LondonMetric was advised by ACRE.
To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews
See which agents are most active in the West Midlands industrial market >>
