Tamworth distribution centre sold as part of £247.5m disposal

THE former Focus Distribution Centre in Tamworth has been sold by LondonMetric Property to a joint venture which includes Solihull-based big ‘sheds’ developer Prologis.

LondonMetric, a UK REIT, has exchanged contracts on the sale of 11 distribution assets for a total consideration of £247.56m, reflecting a net initial yield of 6.25%, to a joint venture between Prologis Europe and Norges Bank Investment Management.

Ten of the assets were held in a 50% joint venture with Green Park Investments but the former Focus Distribution Centre at Tamworth was wholly owned by LondonMetric.

The 2.4m sq ft portfolio is primarily let to third party logistics operators. LondonMetric’s share of net income was £6m per annum.

Following the transaction, LondonMetric will continue to focus on the distribution market, placing a greater emphasis on retailer links starting with its existing retained distribution portfolio of 1.4m sq ft let to retailers such as Primark, the Co-op and, via its 50% joint venture with Green Park, Tesco.

Patrick Vaughan, chairman of LondonMetric, said: “This disposal is in line with our strategy to focus on distribution assets in the retail sector. We know this sector well, and believe this company derives significant benefit from our strong retailer relationships.

“We have a number of investment acquisition opportunities agreed and in solicitors’ hands which will allow us to reinvest, replace and grow our income quickly in an area where the newly merged business has competitive advantages.”

Dowley Turner Real Estate advised LondonMetric and Jones Lang LaSalle advised the joint venture between Prologis and NBIM.