LondonMetric Property has sold four distribution and two industrial warehouses to Pacific Industrial & Logistics REIT for €41.3m (£36m), reflecting a blended NIY of 5.9%.
The properties are amongst the oldest within the LondonMetric portfolio and are located in the Midlands and North of England, with a WAULT to first break of 5.3 years. Five of the assets were acquired in portfolio transactions over the past 3 years. The sixth property is a legacy industrial asset that has recently been refurbished and re-geared. The transaction crystallises a €6.1m (£5.3m) profit and generates an ungeared IRR of 15% pa.
Completion of the disposals has been delayed by three and five months respectively, allowing LondonMetric to continue to receive c. €803,198 (£700,000) of additional rent.
Andrew Jones, Chief Executive of LondonMetric, commented: “As evidenced by our recent acquisitions we remain focused on growing our logistics exposure, however, we will always react to attractive off-market approaches which offer our shareholders superior value. This transaction monetises our older and shorter let distribution assets in geographies where we believe rental growth is less certain. Even though our portfolio is in good shape, some regular activity will ensure that it remains fit for purpose.”
