LondonMetric Property divests urban warehouses for €47m

London-based REIT LondonMetric Property sold five non-core urban warehouses in separate transactions for £40.4 mln (€47.2 mln) at a net initial yield of 4.3%. 

Three London warehouses in Walthamstow, Park Royal and Croydon fetched £30.8 mln (€35.9 mln) reflecting a NIY of 3.9%, and two in Birmingham and Aberdeen sold for £9.6 mln (€11.2 mln) reflecting a 5.7% NIY. 
The sales, to owner-occupiers and long-only funds, align with September book values, generated a 30% profit, and a 10% ungeared IRR. 
This brings LondonMetric's total disposals for the year to March to £347 mln (€405 mln), of which LondonMetric's share was £342 mln (€399 mln), at 1.6% above book value.
Andrew Jones, CEO of LondonMetric, commented: “The sales are both strategic and opportunistic. We have monetised lower yielding assets that have delivered on their asset management plans to deliver strong unlevered returns. The sales proceeds will be reinvested into our core sectors and assets that have superior income and rental growth prospects.”