LondonMetric sells WH Smith warehouse for £18.2m
LondonMetric Property has exchanged contracts to sell its 210,000 square ft WH Smith distribution warehouse in Birmingham to a UK institution for £18.2m, reflecting a net initial yield of 5.2%.
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The property was bought in 2013 for £10.1m with 11 years remaining on the lease.
The disposal generates a geared internal rate of return of over 40%.
Chief executive Andrew Jones said: "The current property market remains strong for well let real estate assets and so we have monetised this investment after concluding a successful asset management initiative. This asset has delivered strong returns and we will take the opportunity to recycle the proceeds into more accretive distribution and development opportunities."
At 0836 GMT, shares in property company were down 0.2% at 159.03p.