LondonMetric offloads £40.4m of warehouses

LondonMetric Property has agreed £40.4m-worth of urban warehousing sales. The five deals, reflecting a net initial yield of 4.3%, have been struck with owner-occupiers and long-only funds. They comprise three London warehouses in Walthamstow, Park Royal and Croydon, sold for £30.8m and reflecting a NIY of 3.9%; and two warehouses in Birmingham and Aberdeen, sold for £9.6m and reflecting a NIY of 5.7%. The sales are in line with 30 September book values and have delivered a profit on cost of 30% and an ungeared IRR of 10%. Chief executive Andrew Jones said: “The sales are both strategic and opportunistic. We have monetised lower yielding assets that have delivered on their asset management plans to deliver strong unlevered returns. The sales proceeds will be reinvested into our core sectors and assets that have superior income and rental growth prospects.”