UK REIT Londonmetric Property has exited the office sector with the sale of its last office asset in Marlow, south England, to Kildare Partners for £68.5 mln (€78 mln).
'This final disposal completes our exit from the office sector following earlier sales in the City of London, Leatherhead and Crawley, which have generated over £400 mln (€455 mln) of receipts,' commented Andrew Jones, chief executive of LondonMetric.
'The delayed completion into next year will enable us to selectively redeploy the proceeds into our growing distribution portfolio which, following this disposal, represents over 67% of our total portfolio,' Jones added.
The 231,000 ft2 office property is 96.7% leased to Allergan, Dun & Bradstreet, Lexington Catering, Icon Clinical and Aptos. The rental income is £4.9 mln (€5.6 mln) pa.
The property was acquired in 2012 for £50.2 mln (€57 mln), reflecting a NIY of 8.9%. Since acquisition, LondonMetric has undertaken eight occupier transactions increasing the rent by 8%.
The deal should close in January 2018.
LondonMetric was advised by Knight Frank and DTRE. CBRE advised the purchaser.
