LondonMetric Property has disposed of two logistics warehouses, in Sheffield and Wakefield, for €78m (£67m), to Exeter Property Group.
The 527,000ft² property in Wakefield (546,000ft² including canopy), previously occupied by Poundworld, has been sold for €50.7m (£43.5m). The building was acquired on practical completion in September 2016 for €45.9m (£39.4m) and has delivered an ungeared IRR of 6% per annum. The sale is in line with book value.
The 335,000ft² property in Sheffield has been sold for €27.4m (£23.5m). The building was acquired in March 2014 for €20m (£17.2m) and is let to M&S until 1 April 2019. It has delivered an ungeared IRR of 13% per annum. LondonMetric retains the adjoining 290,000ft² warehouse, also let to M&S and which has recently been re-geared.
Andrew Jones, Chief Executive of LondonMetric, commented: “As a REIT, we continue to be attracted to the income compounding qualities of well let real estate and so have reacted to an off-market approach to monetise these two non-income generating properties. The receipts will be recycled into more urban logistics assets where valuations are better supported and future rental growth is more certain.”
