LondonMetric Property sells four assets for £26m

August 16, 2022

LONDONMETRIC PROPERTY PLC

LONDONMETRIC SELLS FOUR ASSETS FOR £26M

LondonMetric Property Plc (“LondonMetric”) sold four assets, in two separate transactions, for £25.6m, reflecting a blended NIY of 5.3%.

The properties have a WAULT of five years and include:

  • a portfolio of three multi-tenant industrial assets totaling 53 units over 235,000 square feet, located in Halesowen and Aston, Birmingham. The properties have a WAULT of three years and were sold to The Ardent Companies UK for £21.6 million, reflecting an NIY of 5.7%. They were acquired by LondonMetric in 2019 as part of the Mucklow acquisition for an allocated price of £15.8m and delivered an unindexed IRR of 20%; and
  • a roadside asset in Stamford Hill, London, which was sold for £4.0m, reflecting an NIY of 3.5%. The property is leased to TG Convenience for a further 19 years.

The assets generate £1.5m a year in rent and the transactions are subject to deferred deliveries, which will generate £0.3m of additional revenue for LondonMetric.

Sales crystallize a mixed IRR of 19% and a profit on costs of 35%. Since the start of the current financial year, LondonMetric has traded £111 million in sales at an average premium of 8% to book value at March 31, 2022.

Andrew Jones, Managing Director of LondonMetric, said:

“We have continued to react to market interest in our assets and, despite the current macroeconomic uncertainty, we have achieved strong sales which are crystallizing attractive returns. This activity continues to ensure that our portfolio remains modern, relevant to its purpose and positioned to outperform.”

LondonMetric was advised by ACRE Capital Real Estate in Birmingham and Lewis & Partners in Stamford Hill.

For more information, please contact:

LondonMetric Property Plc

Andrew Jones / Martin McGann / Gareth Price

Tel: +44 (0) 20 7484 9000

FTI Council

Didon Laurimore/Richard Gotla/Andrew Davis

Tel: +44 (0)20 3727 1000

About LondonMetric Property Plc

LondonMetric is a FTSE 250 REIT that has one of the UK’s leading listed logistics platforms, as well as a diversified, long-income portfolio, with 17 million square feet under management. It owns and manages desirable real estate that meets occupier demands, provides reliable, repeatable and growing returns with income, and outperforms over the long term.

Further information is available at www.londonmetric.com

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