Risk Warning The value of investments can fall as well as rise and any income from them is not guaranteed and you may get back less than you invested. Past performance is not a guide to future performance.
By Josh White
Date: Friday 11 Sep 2020
LONDON (ShareCast) - (Sharecast News) - LondonMetric Property announced the disposal of a portfolio of six distribution warehouses for £57.3m to Canmoor and Canadian institutional investor AIMCo on Friday, reflecting a blended net initial yield of 5.3%.
The FTSE 250 company said the disposal would crystallise a profit on cost of £8.8m, and an ungeared internal rate of return of 11% per annum.
Completion of the sale would be delayed until 25 March 2021, allowing LondonMetric to receive around £1.5m in additional rent.
Total receipts upon completion would be 3.8% above the March 2020 book value.
LondonMetric said the portfolio had been acquired over a number of years, including last year's acquisition of A&J Mucklow, and was located in Worcester, Leamington Spa, Royston, Castle Donnington, Milton Keynes and Huyton.
Most of the buildings were constructed in the 1990s, with the portfolio enjoying a weighted average unexpired lease term to break of 7.5 years.
The properties were let to retailer Hamleys, CEVA, ITAB, Transmec and Groupo Antolin, an automotive supplier to JLR.
"The attractive demand: supply dynamics in distribution and the increasing weakness in legacy sectors is attracting substantial capital into the logistics sector from both new and existing investors," said chief executive officer Andrew Jones.
"Whilst we seek to avoid unnecessary asset turnover, we will always take advantage of strong approaches for our assets.
"These proceeds will be reinvested into other quality opportunities in the strongest geographies where rental growth over the long term will be superior."
At 0808 BST, shares in LondonMetric Property were up 0.89% at 230.24p.
|52 Week High||242.80p|
|52 Week Low||137.00p|
Compare performance with the sector and the market.
|1st Interim||4th Interim|
|Time||Volume / Share Price|
|15:48||425 @ 215.20p|
|15:48||675 @ 215.20p|
|15:47||745 @ 215.00p|
|15:46||171 @ 214.80p|
|15:46||962 @ 214.80p|
|Finance Director||Martin McGann|