14th Oct 2019 08:09
(Alliance News) - LondonMetric Property PLC said Monday it has sold an office and distribution warehouse for GBP11.6 million in total, both at material premiums to book value.
The 21,000 square feet office is located in Leicester and is let for a further nine years to conveyancing firm My Home Move. The office was sold for GBP5.7 million at a net initial yield of 6.0%. The office was acquired as part of the FTSE 250 property investor's GBP414.7 million acquisition of AJ Mucklow PLC, which was completed in June.
Meanwhile, the 84,000 square feet distribution warehouse in Doncaster is currently let to FTSE 100 chemicals firm Croda International PLC for two more years. The warehouse was sold for GBP5.9 million at a net initial yield of 6.0%.
LondonMetric first acquired the warehouse in 2017.
"The Leicester office is the first disposal from the recently acquired Mucklow portfolio and we are in active discussions on further disposals from the office portfolio. Following our recently announced forward funding of Croda's new long let distribution hub, we decided to monetise their existing facility which has two years remaining on the lease," said Chief Executive Andrew Jones.
LondonMetric shares were down 2.1% early Monday in London at 219.20 pence.
By Dayo Laniyan; [email protected]
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