LondonMetric Property Plc announces that it has sold two mega box warehouses and two regional distribution warehouses, in three transactions, for a combined consideration of £145.3 million (LondonMetric share: £141.9 million).
In Newark, it has sold a 726,000 sq ft mega warehouse to an international investor for £80.8 million, reflecting a NIY of 5.1%. The asset was acquired in 2014 for £68.5 million and is let to Dixons Carphone for a further 14 years at a rent of £6.00 psf.
In Doncaster, two distribution assets have been sold to an overseas buyer for £51.2 million (£47.9 million at share), reflecting a NIY of 6.2%. They comprise a 330,000 sq ft mega warehouse which was acquired in 2015 for £29.0 million and is let to Next for a further four years at a rent of £6.60 psf; and a 176,000 sq ft regional warehouse which LondonMetric’s DFS joint venture acquired in 2013 for £16.6 million and is let to DFS for a further 10 years at a rent of £7.00 psf.
In Rotherham, a 152,000 sq ft regional distribution warehouse has been sold to a global investor for £13.3 million at a NIY of 5.0%. The warehouse was acquired in 2014 for £10.3 million and is let to the Royal Mail for a further eight years at a rent of £4.70 psf.
The four properties have a WAULT of 10 years and generate a rent of £8.3 million pa (LondonMetric share), of which £3.9 million is subject to delayed completion until June 2020. The assets have delivered ungeared IRRs of between 8% to 10% since purchase.
The total consideration reflects a 2.6% discount to 30 September book value.
Following the sales, LondonMetric’s big box warehousing will represent 14% of its portfolio, across three assets. Income exposure from Dixons Carphone will fall significantly from 6.3% to 3.0% and DFS exposure reduces from 5.4% to 4.3%.
On a pro forma basis, these sales reduce LTV to 35% compared to 38% at 30 September.
Source :LondonMetric Property Plc