EQT Exeter is investing £102m (€120m) to buy a UK distribution warehouse from LondonMetric Property.
LondonMetric said it has agreed to sell the 785,000sqft distribution warehouse in Thrapston, Northamptonshire let to fashion retailer Primark for another 11 years.
LondonMetric said it acquired the property in 2013 for £60.5m. Since acquisition, it has delivered a total return of 123% and an ungeared internal rate of return of 12%.
The deal, expected to complete in February 2022, is generating an additional £2.2m of income, LondonMetric said, adding that total proceeds are 8% above the 31 March 2021 book value.
The FTSE 250-listed real estate investment trust said it retains its other Primark logistics warehouse which totals 1.1m sqft and is let for a further 19 years.
Andrew Jones, CEO of LondonMetric, said: “This is a very good asset that has performed strongly, delivering a total return of £76m since acquisition. The sale price achieved reflects a very competitive bidding process and highlights the depth of demand for well let logistics assets delivering reliable, repetitive and growing income.”
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