UK Commercial Property REIT (UKCM) has sold a logistics asset in London to charity group Covent Garden IP for £74m (€85.2m).

UKCM, which has owned Wembley180 since 2009, said the disposal price of the 186,455sqft asset, reflected a net initial yield of 3.49% and is broadly in line with the asset’s 31 March 2023 valuation.

The FTSE 250 real estate investment trust (REIT) said it expects to use the proceeds from the sale mainly to “enhance earnings by paying down a substantial amount” of its £93m floating rate rolling credit facility.

Will Fulton, lead manager at UK Commercial Property REIT, said: “This disposal allows us to crystallise the value we have created through both the timely acquisition of an asset in a prime London logistics location and our subsequent active asset management of the property, including a long lease to a global e-commerce business.

“We will use proceeds of the sale to enhance earnings, primarily by paying down some short-term debt.”

Dale Bills, spokesman for Covent Garden IP, said: “The purchase of Wembley180 furthers our efforts to make prudent, long-term investments.

“Earnings from our investments are expected to support the religious and charitable work of The Church of Jesus Christ of Latter-day Saints in the UK.”

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