LondonMetric Property sells Primark distribution warehouse for £102.0 million

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LondonMetric Property Plc (LON:LMP) has announced that it has exchanged on the sale of its distribution warehouse in Thrapston, Northamptonshire, to EQT Exeter for £102.0 million, reflecting a NIY of 4.1%.

The 785,000 sq ft warehouse is let to Primark for another 11 years at a rent of £4.4 million pa. LondonMetric acquired the property in 2013 for £60.5 million, reflecting a NIY of 6.4%. Since acquisition, it has delivered a total return of 123% and an ungeared IRR of 12%.

Completion of the sale will take place in February 2022, generating an additional £2.2 million of income. Total proceeds are 8% above the 31 March 2021 book value.

LondonMetric retains its other Primark logistics warehouse which totals 1.1 million sq ft and is let for a further 19 years. On completion of the sale, the portfolio’s weighting towards mega distribution will fall from 13% to 10% and its rental income exposure to Primark will fall from 8% to under 5%.

Andrew Jones, Chief Executive of LondonMetric, commented:

“This is a very good asset that has performed strongly, delivering a total return of 76 million since acquisition. The sale price achieved reflects a very competitive bidding process and highlights the depth of demand for well let logistics assets delivering reliable, repetitive and growing income.”

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