LondonMetric Property has exchanged contracts to sell a distribution warehouse in Reading, England, to EQT Exeter for £60.6 mln (€71.5 mln).
The 229,000 sq ft (21,280 m2) warehouse is let to DHL. LondonMetric acquired the property in 2015 with ten years on the lease for £29.1 mln, reflecting a NIY of 5.7%. Since acquisition, LondonMetric settled the 2020 open market rent review at 28% above previous passing.
The sale is 20% above the 30 September 2021 book value and will crystallise an ungeared IRR of 15%.
Completion of the transaction will take place in November 2022.
Andrew Jones, Chief Executive of LondonMetric, commented: ‘This is a very good asset that has performed strongly, which was reflected in the quality and depth of demand we had from potential buyers. We will look to redeploy the proceeds into urban logistics assets around London and NNN income properties, which remain our strongest conviction calls.’
LondonMetric was advised by JLL. The purchaser was represented by Knight Frank.
