LondonMetric Property has announced that it has exchanged contracts to sell its 210,000 sq ft WH Smith distribution warehouse in Birmingham to a UK institution for GBP18.2 million, reflecting a net initial yield of 5.2%.
The property was acquired in 2013 for GBP10.1 million with 11 years remaining on the lease. Simultaneous with purchase, LondonMetric re-geared the lease on a new 21 year term at a yield on cost of 7.5%.
The disposal generates a geared IRR of over 40%.
LMP sells Birmingham distribution warehouse