Industrial and logistics investor LondonMetric Property has made the first disposal from the Mucklow portfolio it acquired earlier this year for £415m.
It has sold an office in Leicester for £5.9m, reflecting a net initial yield of 6%. The 21,000 sq ft office is let for a further nine years to My Home Move.
The sale comes following LondonMetric’s acquisition of fellow listed property company Mucklow in May this year for £415m. Mucklow’s portfolio was predominantly made up of logistics assets in the Midlands but also contained some office assets, which do not fit with LondonMetric’s portfolio. LondonMetric said it was in active discussions on the sale of further offices from the portfolio.
The company also announced the sale of an 84,000 sq ft distribution warehouse in Doncaster, which is let to Croda for another two years, for £5.9m at a yield of 7%. It was acquired in August 2017 and has delivered an ungeared IRR of 11% a year.
The decision to sell follows LondonMetric’s forward funding of Croda’s new long let distribution hub.
LMP : LondonMetric makes first sale from Mucklow portfolio acquisition