UK-based real estate investment trust (REIT) LondonMetric has sold four properties for £25.6 mln (€30.2 mln) in two separate transactions.
The transactions reflect a blended net initial yield (NIY) of 5.3%.
The properties have a weighted average unexpired lease term (WAULT) of five years.
They comprise a portfolio of three multi-let industrial assets in Halesowen and Aston, Birmingham and a roadside asset in Stamford Hill, London.
The Birmingham assets total 53 units across 21,832 m2 and were sold to The Ardent Companies UK for £21.6 mln (€25.5 mln) reflecting a NIY of 5.7%. The three properties have a WAULT of three years.
Originally acquired by LondonMetric in 2019 as part of the £15.8 mln (€18.7 mln) Mucklow acquisition, they have delivered an internal rate of return (IRR) of 20%.
The London asset was sold for £4.0 mln (€4.7 mln), reflecting a NIY of 3.5%.
The property is leased to TG convenience for an additional 19 years.
Andrew Jones, CEO of LondonMetric, commented: ‘We have continued to react to market interest for our assets and, despite the current macro uncertainty, have achieved strong sales that crystalise attractive returns. This activity continues to ensure that our portfolio remains modern, fit for purpose and positioned to outperform.’
The assets bring £1.5 mln (€1.8 mln) in annual rent and when the deals go through, they should bring an additional £0.3 mln (€0.35 mln) in revenue.
The sales deliver a blended ungeared IRR of 19% and a 35% profit on cost.