14th Sep 2023 09:25
(Alliance News) - LondonMetric Property PLC on Thursday said it sold four multi-let industrial estates to Hines.
The London-based real estate investor said the GBP40.5 million sales reflected a net initial yield of 6.2%. Three of the estates are located in Birmingham and one is located in Rugby.
The four properties were bought in 2019 for GBP30.9 million, with the sales having an ungeared internal rate of return of 13%, in line with March 2023 book value.
Chief Executive Officer Andrew Jones said: "These assets have delivered returns materially above our initial expectations from a combination of rental growth and yield compression. The sale is expected to be earnings per share accretive and represents our exit from highly operational multi-let industrial estates. Looking forward, we will continue to focus on aligning the portfolio to triple net lease assets that can deliver secure income and growth without incurring dilutive operational costs."
LondonMetric shares were 0.2% lower at 174.90 pence each on Thursday morning in London.
By Tom Budszus, Alliance News reporter
Comments and questions to [email protected]
Copyright 2023 Alliance News Ltd. All Rights Reserved.