Distribution warehouses sold in multi-million pound deal

Listed firm LondonMetric Property has this morning announced the disposal of three distribution warehouses for £24.3 million – two of which are in Wakefield.

The commercial property business said the sale of the Wakefield warehouses, in addition to the sale of a warehouse in Ashby-de-la-Zouche, reflected a blended net initial yield of 5.4%. The sale price achieved was 4% above book value.

Andrew Jones, Chief Executive of LondonMetric, said:”The market remains strong for real estate assets with structural support. Whilst we remain focused on growing our logistics portfolio, we have continued to monetise some of our shorter let assets, where we benefitted from yield compression, but where we believe rental growth, in the weaker geographies, is less certain.

“Whilst 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 £66 million of assets across sub sectors at a NIY of 4.8% and a WAULT to first break of 6 years.”

JLL acted for Londonmetric at Ashby-de-la-Zouche and Wakefield.

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