UK REIT LondonMetric Property has announced the sale of the DFS Furniture property in Enfield, UK for £24.5 mln (€33 mln) on behalf of its DFS joint venture.

UK REIT LondonMetric Property has announced the sale of the DFS Furniture property in Enfield, UK for £24.5 mln (€33 mln) on behalf of its DFS joint venture.

The unit is let at a rent of £1.7 mln per annum and the sale to a large UK institution reflects a net initial yield of 6.6%.

The joint venture acquired the 32,000 sq ft (2,980 m2) property in March 2014 as part of a portfolio of 27 DFS stores from the administrators to Delphi Properties. The deal reflected an overall net initial yield of 9.3%.

The sale crystallises a profit on cost of 19% and a geared internal rate of return of 30%, LondonMetric said in a statement.

Separately, LondonMetric said it has also sold its Watling Retail Park in Cannock for £7.5 mln to a UK institution reflecting a NIY of 6.15%. The 25,000 sq ft retail park was developed by LondonMetric in November 2012 for a yield on cost of 8.6%. It is fully let to DFS, Carpetright and Porcelanosa with a remaining weighted average unexpired lease term to break of 13.3 years. The disposal crystallises a profit on cost of 32% and a geared IRR of 31%.

LondonMetric advised the joint venture on Enfield and Strutt & Parker advised LondonMetric on Cannock.