LondonMetric Property has disposed of a portfolio of six distribution warehouses for €61.9m (£57.3m) to Canmoor and Canadian institutional investor, AIMCo, reflecting a blended NIY of 5.3%. The portfolio has been acquired over a number of years, including last year’s acquisition of A&J Mucklow, and is located in Worcester, Leamington Spa, Royston, Castle Donnington, Milton Keynes and Huyton. Most of the buildings were constructed in the 1990s and the portfolio enjoys a WAULT to break of 7.5 years.
Andrew Jones, Chief Executive of LondonMetric, commented: “The attractive demand: supply dynamics in distribution and the increasing weakness in legacy sectors is attracting substantial capital into the logistics sector from both new and existing investors. Whilst we seek to avoid unnecessary asset turnover, we will always take advantage of strong approaches for our assets. These proceeds will be reinvested into other quality opportunities in the strongest geographies where rental growth over the long term will be superior.”