‘Opportunistic’ approach delivers £21m off-market property deal
LondonMetric Property has accepted an “opportunistic” offer to sell a Solihull warehouse for £20.5m.
The DHL logistics warehouse at Stirling Park has been bought by an unnamed buyer in an off-market deal.
LondonMetric acquired the 142,000 sq ft warehouse in 2017 as part of a £117m portfolio bought from Cabot Properties.
The Solihull site had an allocated purchase price of £15.7m and the deal value is at “a small premium” to its current book value.
LondonMetric regeared the property in 2018, extending the lease to DHL to 10 years with a break after five years, and it recently removed the break.
Andrew Jones, chief executive of LondonMetric, said: “With the recent strengthening in the investment market, we have reacted to an opportunistic off-market approach to sell this warehouse.
“The proceeds of the disposal will be used to further reduce our floating rate debt and LTV.”
The deal reflects a net initial yield of 4.15% with a rent review due later this year.