LondonMetric sells WH Smith Birmingham base for £18.2m

PROPERTY owner LondonMetric has exchanged contracts to sell its 210,000 sq ft WH Smith distribution warehouse in Birmingham to a UK institution for £18.2m.

This reflects a net initial yield of 5.2%.
 
The property, understood to be in Aston, was acquired in 2013 for £10.1m with 11 years remaining on the lease. Simultaneous with purchase, LondonMetric re-geared the lease on a new 21 year term at a yield on cost of 7.5%.
 
Andrew Jones, chief executive of LondonMetric, said: “The current property market remains strong for well let real estate assets and so we have monetised this investment after concluding a successful asset management initiative.

“This asset has delivered strong returns and we will take the opportunity to recycle the proceeds into more accretive distribution and development opportunities.”
 
LondonMetric was advised by CBRE and JLL acted for the unnamed purchaser.