LondonMetric sells last office office building for £68.5m

LondonMetric Property said it had sold its last remaining office asset in Marlow to Kildare Partners for £68.5m.

The 231,000 sq ft office property is 96.7% let off a weighted average unexpired lease term of seven years to Allergan, Dun & Bradstreet, Lexington Catering, Icon Clinical and Aptos. The rental income is £4.9m per annum.

The property was acquired in 2012 for £50.2m, reflecting a net initial yield of 8.9%. Since acquisition, LondonMetric has undertaken eight occupier transactions increasing the rent by 8%. The asset has generated an ungeared internal rate of return of 9.6% per annum since purchase.

A 10% deposit was paid on exchange and completion will take place in January 2018. Total receipts upon completion will be at book value, LondonMetric said.