UK REIT LondonMetric Property has sold a Tesco logistics warehouse in Bolton for £24.4 mln (€28 mln), reflecting a net initial yield of 5.35%.
The 25,500 m2 regional warehouse was acquired as part of the £117 mln Cabot logistics portfolio in August 2017 off a blended net initial yield of 6.1%.
The unit is let to Tesco for a further four years at a rental of £1.4 mln per annum.
LondonMetric continues to retain the remaining 13 logistics assets from the Cabot portfolio of which 11 are urban logistics.
Andrew Jones, CEO of LondonMetric, commented: 'Consumer shopping patterns in food retailing continue to evolve quickly and so in response to strengthening investor appetite for logistics assets over the last few months, we have decided to monetise this asset.'
LondonMetric said it will recycle the proceeds into its urban logistics portfolio and its development pipeline as they offer more attractive yields and greater certainty of growth.
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