LondonMetric Property PLC (LON:LMP) has sold off six distribution warehouses after receiving an £57.3mln offer it thought was too good to refuse.
The FTSE 250 group, which will complete the deal next March so it can receive another £1.5mln of rent, has agreed the sale of properties acquired over several years with a combined net initial yield of 5.3% to UK developer Canmoor and Canadian institutional investor AIMCo.
READ: LondonMetric says it intends to increase dividend
Mostly built in the 1990s, the warehouses are located in Worcester, Leamington Spa, Royston, Castle Donnington, Milton Keynes and Huyton; with tenants including retailer Hamleys, logistics companies Ceva and Transmec, and automotive supplier Groupo Antolin.
“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 LondonMetric chief executive Andrew Jones.
“Whilst we seek to avoid unnecessary asset turnover, we will always take advantage of strong approaches for our assets.”
He said the proceeds will be reinvested into other opportunities in the strongest geographies where management see superior rental growth over the long term.
The shares slightly higher in early trade on Friday at 228.4p, down 4% since the start of the year.