LondonMetric Property Plc announces that it has exchanged on the sale of its 341,000 ft² distribution facility in Wellingborough to an institutional investor for £29.2 mln (approx. €41.8 mln), reflecting a NIY of 5.8%.
The property was acquired in June 2009 for £19.6 mln and has delivered a 38% profit on cost. The unit is let for a further 12.3 years to Somerfield Stores Limited and sublet to Yusen Logistics on a short-term basis. The transaction will complete at the end of October.
Following this disposal, LondonMetric’s distribution portfolio will comprise 22 distribution centres and total £633.4 mln (approx. €908.3 mln). The distribution portfolio has 100% occupancy, a WAULT of 12.9 years and now accounts for 46% of the total portfolio.
Andrew Jones, Chief Executive of LondonMetric, commented: “This asset has performed strongly over the last six years delivering a geared IRR of 24.2% pa. We will now look to recycle the proceeds into further asset management and development opportunities across the logistics sector that better fit our return criteria.”
LondonMetric was advised by Fulwell Capital and the purchaser was advised by Strutt & Parker.
Source: LondonMetric Property Plc