16th Aug 2021 09:06
(Alliance News) - LondonMetric Property PLC on Monday said it sold a 785,000 square foot distribution warehouse in Thrapston, Northamptonshire.
The London-based owner and manager of real estate sold the facility, which is a logistics warehouse for fast-fashion retailer Primark, for GBP102.0 million to investor EQT Exeter Advisors UK Ltd. Primark is owned by Associated British Foods PLC.
The sale reflects a net initial yield of 4.1%, down from 6.4% when LondonMetric acquired the property in 2013 for GBP60.5 million.
"This is a very good asset that has performed strongly, delivering a total return of GBP76 million since acquisition," said Chief Executive Andrew Jones.
"The sale price achieved reflects a very competitive bidding process and highlights the depth of demand for well let logistics assets delivering reliable, repetitive and growing income."
Completion of the sale will be in February 2022, and LondonMetric anticipates its portfolio weighting towards mega-distribution will drop to 10% from 13%. Its rental income exposure to Primark will drop to 5% from 8%.
LondonMetric still holds a 1.1 million square foot warehouse which is leased to Primark for another 19 years.
Primark will lease the Thrapston warehouse for another eleven years at an annual rent of GBP4.4 million.
Shares in LondonMetric were up 1.2% at 262.00 pence in London on Monday morning trading.
By Josie O'Brien; [email protected]
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