royal mail

Royal Mail distribution warehouse sold for £48.8m

LondonMetric Property has announced that it has exchanged on the sale of a Royal Mail distribution warehouse to Tritax Big Box REIT for £48.8m.

The 272,000 sq ft property is located in Daventry, Northamptonshire, and was acquired by LondonMetric in 2014 for £36m.

The property generated an income of £2.6m per year and has an unexpired lease term of six years.

The property has generated a profit on cost of 31% and has been sold at slightly above book value.

Andrew Jones, chief executive of LondonMetric, said: "This asset has performed strongly, delivering an ungeared IRR [internal rate of return] of 15% pa. 

“We will recycle the proceeds into our pipeline of investment and development opportunities, particularly in urban and regional logistics where we continue to see value and good prospects for further rental growth."

LondonMetric is real estate investment trust that specialises in distribution, convenience and long income property.

The company currently has 12 million sq ft under management.

Tritax Big Box REIT was advised by DTRE.

Last month, Royal Mail sold a 6.25-acre site to developer Taylor Wimpey for £193.5m.

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