LondonMetric Property has sold a PC World in Hove, East Sussex, to clients of Aberdeen Asset Management for £13.6m, reflecting a 5.4% net initial yield.
The FTSE 250-listed REIT bought the building for £8.1m and recently signed a new 15-year lease, with a break at 10 years, with the retailer at a rent of £800,000 pa.
The property spans 28,000 including a 9,000 sq ft extension, on which work will commence shortly.
The sale is expected to complete in January 2016 and crystallises a geared IRR of 17% and a profit on cost of 33%.
Andrew Jones, chief executive of LondonMetric, said: “We will continue to sell down retail assets that have delivered on their business plans and recycle funds into our growing distribution portfolio and our developments.”
LondonMetric was advised by Wilkinson Williams. Knight Frank acted for Aberdeen.
