16th Aug 2022 09:13
(Alliance News) - LondonMetric Property PLC on Tuesday said it has sold a trio of assets in Birmingham and one London property for total GBP25.6 million.
In its first transaction, the London-based property investor sold three multi-let industrial assets located in Halesowen and Aston, Birmingham. The properties, which total 53 units across 235,000 square foot, were acquired by LondonMetric in 2019 for GBP15.8 million.
LondonMetric said that the properties have a weighted average unexpired lease term of three years and have been sold to Ardent Companies UK Ltd for GBP21.6 million. This reflects a net initial yield of 5.7%.
In a separate transaction, the company sold is roadside asset in Stamford Hill, London for GBP4.0 million, reflecting a NIY of 3.5%. The property will be let to TG Convenience Stores Ltd for a further 19 years.
Overall, the sales have a blended internal rate if return of 19% and a 35% profit on cost, the company said.
LondonMetric added that the properties generate GBP1.5 million rent per year and because the transactions are subject to delayed completion, they will generate a further GBP300,000 income for the company.
Chief Executive Officer Andrew Jones said: "We have continued to react to market interest for our assets and, despite the current macro uncertainty, have achieved strong sales that crystallise attractive returns. This activity continues to ensure that our portfolio remains modern, fit for purpose and positioned to outperform."
Shares in LondonMetric were down 1.1% to 245.32 pence each in London on Tuesday morning.
By Sophie Rose; [email protected]
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