(Alliance News) - London-based property investor LondonMetric Property PLC on Tuesday said it has sold five warehouses in two transactions for GBP34.8 million
Four of the assets have been sold as a portfolio for GBP25.5 million. This includes a 82,000 square foot property in Coventry, a 42,000 sq ft property in Warrington, a 37,000 sq ft property in Golden Cross, Birmingham, and a 37,000 sq ft property in Redfern, Birmingham.
In a separate transaction, LondonMetric has sold an additional 91,000 sq ft unit in Coventry for GBP9.3 million.
The company said that the sales reflect a net initial yield of 5.0% and a 4.0% discount to the September 30 book value. It added that the sales crystallise an ungeared internal rate of return of 11% and a 28% profit on cost.
Chief Executive Andrew Jones said: "These assets have performed well since acquisition and support our early macro call into urban logistics.
"Our disposals over the last 12 months now total GBP250 million and we will continue to seek out new urban and regional warehouse opportunities where we can leverage our asset management capabilities."
Shares in LondonMetric were down 1.5% to 164.00 pence each in London on Tuesday morning.
By Sophie Rose, Alliance News reporter
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LondonMetric (LMP)