UK Commercial Property REIT has sold its 186,455 sq ft Wembley180 logistics asset in London for £74m, which reflects a net initial yield of 3.49% and is broadly in line with the 31 March 2023 valuation.
The buyer was Covent Garden IP Limited, a registered charitable company that supports The Church of Jesus Christ of Latter-day Saints in the United Kingdom.
UK Commercial Property REIT has owned the property since 2009 and completed a refurbishment of the asset in 2019 when it let the unit to a global e-commerce company until 2029.
It will primarily use the proceeds to enhance earnings by paying down a substantial amount of its £93m floating rate Revolving Credit Facility (RCF), currently costing 6.3% per annum in interest.
Will Fulton, lead manager at UKCM, said: “This disposal allows us to crystallise the value we have created through both the timely acquisition of an asset in a prime London logistics location and our subsequent active asset management of the property, including a long lease to a global e-commerce business. We will use proceeds of the sale to enhance earnings, primarily by paying down some short-term debt.”
UKCM : UK Commercial Property REIT sells Wembley logistics scheme at 3.5% yield