LondonMetric Property has announced the sale of a portfolio of six distribution warehouses in the UK to Canmoor and Canadian institutional investor, AIMCo, for £57.3 mln (€62 mln), reflecting a blended NIY of 5.3%.
The portfolio has been acquired over a number of years, including last year's acquisition of A&J Mucklow, and is located in Worcester, Leamington Spa, Royston, Castle Donnington, Milton Keynes and Huyton. Most of the buildings were constructed in the 1990s and the portfolio enjoys a weighted average unexpired lease term to break of 7.5 years.
The properties are let to retailer Hamleys, CEVA, ITAB, Transmec and Groupo Antolin, an automotive supplier to JLR.
The disposal will crystallise an £8.8 mln profit on cost and an ungeared IRR of 11% per annum, LondonMetric said in a statement.
Completion of the sale is scheduled for 25 March 2021, allowing LondonMetric to receive £1.5 mln of additional rent.
Andrew Jones, CEO of LondonMetric, commented: ‘Whilst we seek to avoid unnecessary asset turnover, we will always take advantage of strong approaches for our assets. These proceeds will be reinvested into other quality opportunities in the strongest geographies where rental growth over the long term will be superior.’
LondonMetric was advised by ACRE Capital Real Estate.
