LondonMetric sells in Marlow for £68.5m

LondonMetric has sold its last remaining office asset in Marlow to Kildare Partners for £68.5m, netting an £18m return on its investment in the scheme it bought five years ago.

The 231,000 sq ft office is 96.7% let off a weighted average unexpired lease term of 7 years to Allergan, Dun & Bradstreet, Lexington Catering, Icon Clinical and Aptos. The rental income is £4.9m a year.

LondonMetric acquired the building in 2012 for £50.2m, reflecting a net initial yield of 8.9%. Since acquisition, the group has undertaken eight occupier transactions increasing the rent by 8%. The asset has generated an ungeared return of 9.6% a year since purchase.

Andrew Jones, chief executive of LondonMetric, said: “This final disposal completes our exit from the office sector following earlier sales in the City of London, Leatherhead and Crawley, which have generated over £400m of receipts.

“The delayed completion into next year will enable us to selectively redeploy the proceeds into our growing distribution portfolio which, following this disposal, represents over 67% of our total portfolio.”

LondonMetric was advised by Knight Frank and DTRE. CBRE advised Kildare.

Related Articles

Have your say

Sign in to make a comment on this story.

Sign In

Text size

Desktop Site | Mobile Site