(Alliance News) - LondonMetric Property PLC on Thursday said it completed the sale of three multi-let industrial estates in England for GBP46.0 million, representing a net initial yield of 5.8%.
The London-based property investor said the disposal was slightly above book value at September 30 last year. Two of the estates are located in Birmingham, while the third is located in Dudley.
The estates total 446,000 square feet across 11 units, generating around GBP2.9 million per year in rental income, it said, with a weighted average unexpired lease term to first break of 2.7 years.
LondonMetric said the properties came as part of its Mucklow acquisition in June 2019. Since then, over GBP140 million of Mucklow assets have been sold, reflecting a 24% uplift against allocated cost.
The sales announced Thursday resulted in an ungeared internal rate of return of 19%.
"These assets have generated returns significantly above our initial expectations from accelerated rental growth and material yield compression. However, our portfolio is heavily focussed on triple net income and so this is an opportune time to crystallise our investment in multi-let estates," said Chief Executive Officer Andrew Jones.
"Together with our other recent sales, this disposal puts us in a strong position to take advantage of new opportunities that we expect to see across the urban and regional warehouse markets."
Earlier in March, LondonMetric said it sold seven long income assets for GBP34 million, with the company's share at GBP30 million.
Shares in LondonMetric were up 0.1% to 168.20 pence each in London on Thursday morning.
By Greg Rosenvinge, Alliance News reporter
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LondonMetric (LMP)