LondonMetric Property Plc has exchanged on the sale of a Royal Mail distribution warehouse in Daventry to Tritax Big Box REIT plc for €55.4m (£48.8m), reflecting a NIY of 5.0%.
LondonMetric acquired the bespoke 272,000 ft² warehouse in 2014 for €40.8m (£36m), reflecting a NIY of 6.7%. It generates income of €2.95m (£2.6m) pa and has an unexpired lease term of 6 years.The property has generated a profit on
The property has generated a profit on cost of 31% and has been sold at marginally above book value.
Andrew Jones, Chief Executive of LondonMetric, commented: “This asset has performed strongly, delivering an ungeared IRR of 15% pa. We will recycle the proceeds into our pipeline of investment and development opportunities, particularly in urban and regional logistics where we continue to see value and good prospects for further rental growth.”
