LondonMetric has sold a distribution warehouse in Reading, Berkshire, to EQT Exeter for £60m.
The sale price is 20% above the September book value and gives an ungeared IRR of 15%.
The REIT paid £29m for the 229,000 sq ft warehouse in 2015, which was let to DHL with 10 years remaining on the lease.
Since then it settled the 2020 open-market rent review at 28% above previous passing rent.
Chief executive Andrew Jones said: “This is a very good asset that has performed strongly, which was reflected in the quality and depth of demand we had from potential buyers.”
The deal is expected to complete in November.
He added: “We will look to redeploy the proceeds into urban logistics assets around London and NNN income properties, which remain our strongest conviction calls.”
LondonMetric was advised by JLL; the purchaser was represented by Knight Frank.
View details of deals in the Reading industrial market >>
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