LondonMetric disposes of Reading warehouse asset for £60.6m

Real estate investment trust LondonMetric Property has disposed of its 229,000 square foot DHL distribution warehouse in Reading for a total of £60.6m.

LondonMetric said on Thursday that it had exchanged contracts for the sale of the asset and added that completion was expected to take place in November.

The FTSE 250-listed firm originally acquired the property for £29.1m back in 2015, with ten years on the lease, reflecting a net initial yield of 5.7%. Since the acquisition, LondonMetric settled the 2020 open market rent review at 28% above previous passing.

LondonMetric highlighted that the sale price was 20% above the 30 September book value and would crystallise an ungeared internal rate of return of 15%.

Chief executive Andrew Jones said: "This is a very good asset that has performed strongly, which was reflected in the quality and depth of demand we had from potential buyers. We will look to redeploy the proceeds into urban logistics assets around London and NNN income properties, which remain our strongest conviction calls."

Reporting by Iain Gilbert at Sharecast.com