LondonMetric Property has sold a distribution facility in the English market town of Wellingborough in the East Midlands to an institutional investor for £29.2 mln (€41.5 mln).

LondonMetric Property has sold a distribution facility in the English market town of Wellingborough in the East Midlands to an institutional investor for £29.2 mln (€41.5 mln).

The deal reflects a net initial yield of 5.8%, close to the average prime industrial yield recorded for Manchester by CBRE in Q2 of 5.75%.

The 341,000 sq ft (around 32,000 m2) property was acquired in June 2009 for £19.6 mln and has delivered a 38% profit on cost, LondonMetric said.

The facility is let for a further 12.3 years to Somerfield Stores Limited and sub-let to Yusen Logistics on a short-term basis. The transaction will complete at the end of October.

Following the disposal, LondonMetric’s distribution portfolio will comprise 22 centres with a total value of £633.4 mln.

Andrew Jones, CEO of LondonMetric, commented: ‘This asset has performed strongly over the last six years delivering a geared IRR of 24.2% pa. We will now look to recycle the proceeds into further asset management and development opportunities across the logistics sector that better fit our return criteria.’

LondonMetric was advised by Fulwell Capital and the purchaser was advised by Strutt & Parker.