LondonMetric Property has exchanged contracts to sell a WH Smith distribution warehouse in Birmingham to a UK institution.
LondonMetric Property has exchanged contracts to sell a WH Smith distribution warehouse in Birmingham to a UK institution.
The investment volume of £18 mln (€25 mln) reflects a new initial yield of 5.2%.
LondonMetric had acquired the 19,500 m2 property in 2013 for £10.1 mln with 11 years remaining on the lease. Simultaneous with purchase, LondonMetric re-geared the lease on a new 21 year term at a yield on cost of 7.5%.
The disposal generates a geared IRR of over 40%.
Andrew Jones, CEO of LondonMetric, commented: 'The current property market remains strong for well let real estate assets and so we have monetised this investment after concluding a successful asset management initiative. This asset has delivered strong returns and we will take the opportunity to recycle the proceeds into more accretive distribution and development opportunities.”
LondonMetric was advised by CBRE and JLL acted for the purchaser.
