20th Apr 2015 06:07
LONDON (Alliance News) - LondonMetric Property PLC Monday said it has exchanged contracts on the sale of its 170,000 square foot Travis Perkins PLC distribution facility in Brackmills, Northamptonshire to CBRE Global Investors for GBP14.4 million, reflecting a net initial yield of 5.5%.
The property was bought in November 2013 for GBP9.0 million with four months remaining on the lease. LondonMetric re-geared the lease on a new ten year term at a yield on cost of 8.0%.
Following this disposal, LondonMetric's distribution portfolio, including developments, totals GBP584.3 million, comprising 21 distribution centres with a weighted average unexpired lease term of 14.5 years and with 52.1% of income subject to fixed uplift or RPI increases. The distribution portfolio is the company's largest sector, representing over 44% of the total portfolio.
"This is another very good asset that has performed strongly as a result of our active asset management. We will look to recycle the disposal proceeds into other accretive distribution assets," Chief Executive Andrew Jones said.
By Steve McGrath; [email protected]; @stevemcgrath1
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