UK REIT LondonMetric Property has agreed to sell a Royal Mail distribution warehouse in Daventry, England, to Tritax Big Box REIT.
The deal amounts to £49 mln (€55 mln), reflecting a net initial yield of 5.0%.
LondonMetric acquired the 272,000 sq ft (25,300 m2) warehouse in 2014 for £36.0 mln, reflecting a NIY of 6.7%. It generates income of £2.6 mln per annum and has an unexpired lease term of 6 years.
The property has generated a profit on cost of 31%, the vendor said.
'This asset has performed strongly, delivering an ungeared IRR of 15% per annum,' said Andrew Jones, CEO of LondonMetric. 'We will recycle the proceeds into our pipeline of investment and development opportunities, particularly in urban and regional logistics where we continue to see value and good prospects for further rental growth.'
Tritax Big Box REIT was advised by DTRE.
