LondonMetric Property Plc has announced the disposal of its 341,000 sq ft Wellingborough distribution facility in Northamptonshire for £29.2 million to an institutional investor, which reflects a net initial yield of 5.%.
It was acquired back in June 2009 for £19.6 million and has since seen a 38% profit on cost. Currently, it is let out to Somerfield Stores Limited for 12.3 years and sublet to Yusen Logistics on a short-term basis. The transaction is due to be completed at the end of October.
Chief Executive of LondonMetric, Andrew Jones, 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’s distribution portfolio after the sale of the facility will now comprise 22 distribution centres that total £633.4 million. Its distribution portfolio is 100% occupied, with a Weighted Average Lease Expiry of 12.9 years, accounting for 46% of the total portfolio.
Advising LondonMetric during the deal was Fulwell Capital while the purchaser was advised by Strutt & Parker.
Press Release: LondonMetric Property Plc
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