LondonMetric Property has exchanged on the sale of five assets in two transactions for £34.8 mln (€40 mln), which reflects a net initial yield of 5.0% and a 4% discount to the 30 September 2022 book value.
Four of the assets have been sold as a portfolio for £25.5 mln. The properties have a WAULT of four years and comprise 82,000 ft2 (7,600 m2) in Coventry; 42,000 ft2 in Warrington; 37,000 ft2 in Golden Cross, Birmingham; and 37,000 ft2 in Redfern, Birmingham.
In a separate transaction, LondonMetric has sold an additional 91,000 ft2 unit in Coventry for £9.3 mln. The property is let for a further nine years and is held on a long leasehold interest with 87 years unexpired.
Since acquisition, LondonMetric has carried out various asset management initiatives on these assets including lease re-gears, rent reviews and removal of break clauses.
The sales crystallise an ungeared IRR of 11% and a 28% profit on cost.
Andrew Jones, chief executive of LondonMetric, commented: 'These assets have performed well since acquisition and support our early macro call into urban logistics.
'Our disposals over the last 12 months now total £250 million and we will continue to seek out new urban and regional warehouse opportunities where we can leverage our asset management capabilities.'
