LondonMetric disposes of industrial portfolio for £46m
LondonMetric Property has sold a West Midlands portfolio of industrial estates for £46m.
The three estates comprise 446,000 sq ft across 113 units and generate £2.9m per annum of rental income, with a WAULT to first break of 2.7 years.
Two estates are located in Birmingham – one in Coleshill and the other in Stirchley. The third is located in Dudley. The properties were previously acquired as part of the Mucklow acquisition in June 2019. Since the Mucklow transaction, more than £140m of Mucklow assets have now been sold, reflecting a 24% uplift against allocated cost.
The disposal reflects a NIY of 5.8% and crystallise an ungeared IRR of 19%.
Andrew Jones, Chief Executive of LondonMetric, commented: “These assets have generated returns significantly above our initial expectations from accelerated rental growth and material yield compression. However, our portfolio is heavily focussed on triple net income and so this is an opportune time to crystallise our investment in multi-let estates.
“Together with our other recent sales, this disposal puts us in a strong position to take advantage of new opportunities that we expect to see across the urban and regional warehouse markets.”
LondonMetric was advised by ACRE and the purchaser was advised by JLL.