LondonMetric

LondonMetric sells three warehouses for £24m



LondonMetric Property PLC has disposed of three distribution warehouses for £24.3m.

The properties were sold to various buyers, reflecting a blended net investment yield (NIY) of 5.4%.

The warehouses were sold for 4% above book value.

Two of the distribution warehouses are located in Wakefield, West Yorkshire, while the third is a regional distribution warehouse in Ashby-de-la-Zouch, Leicestershire.

Combined, the warehouses have a weighted average unexpired lease term (WAULT) to first break of 3.4 years and are all subject to open market rent reviews.

Andrew Jones, chief executive at LondonMetric (pictured above), said that the market remained strong for real estate assets with structural support.

“While we remain focused on growing our logistics portfolio, we have continued to monetise some of our shorter-let assets, where we benefited from yield compression, but where we believe rental growth – in the weaker geographies – is less certain.

“While these sales will have an impact on our short-term earnings, they are the right property decisions, which strengthen the remaining portfolio.

“Since the half-year end, we have now sold a total of £66m of assets across sub sectors at a NIY of 4.8% and a WAULT to first break of six years."


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