REG - LondonMetric - LONDONMETRIC SELLS PORTFOLIO OF INDUSTRIAL UNITS

Londonmetric PropertyAnnouncement

14/09/2023 07:00

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RNS Number : 3628M  LondonMetric Property PLC  14 September 2023

14 September 2023

 

LONDONMETRIC PROPERTY PLC

 

LONDONMETRIC SELLS PORTFOLIO OF FOUR MULTI-LET INDUSTRIAL UNITS

FOR £41 MILLION

 

LondonMetric Property Plc ("LondonMetric") announces that it has exchanged on
the sale of a portfolio of four multi-let industrial estates, to Hines, for
£40.5 million, reflecting a NIY of 6.2%.

 

The estates total 435,000 sq ft across 47 units and generate £2.7 million
p.a. of rental income, with a WAULT to first break of 2.9 years. Three of the
estates are located in Birmingham (Kingshill, Redwood Park and Shenstone) and
the fourth in Rugby (Triton Park).

 

The properties were previously acquired as part of the Mucklow acquisition in
June 2019 for an allocated price of £30.9 million. The sales crystallise an
ungeared IRR of 13% and are in line with March 2023 book value.

 

LondonMetric has now disposed of £194 million of former Mucklow assets,
equating to 35% of the original portfolio and generating a 26% uplift against
allocated cost.

 

Andrew Jones, Chief Executive of LondonMetric, commented:

"These assets have delivered returns materially above our initial expectations
from a combination of rental growth and yield compression. The sale is
expected to be EPS accretive and represents our exit from highly operational
multi-let industrial estates.

 

"Looking forward, we will continue to focus on aligning the portfolio to NNN
lease assets that can deliver secure income and growth without incurring
dilutive operational costs."

 

LondonMetric was advised by ACRE.

 

For further information, please contact:

 

LondonMetric Property Plc

Andrew Jones / Martin McGann / Gareth Price

Tel: +44 (0) 20 7484 9000

 

FTI Consulting

Dido Laurimore / Richard Gotla / Andrew Davis

Tel: +44 (0) 20 3727 1000

 

About LondonMetric Property Plc

LondonMetric is a FTSE 250 REIT that owns one of the UK's leading listed
logistics platforms alongside a grocery-led long income portfolio, with 17
million sq ft under management. It owns and manages desirable real estate that
meets occupiers' demands, delivers reliable, repetitive and growing income-led
returns and outperforms over the long term.

Further information is available at www.londonmetric.com
(http://www.londonmetric.com)

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