UK Commercial Property REIT (UKCM) has sold the Wembley180 logistics unit to Covent Garden IP for £74m.
The sale price of the 186,455 sq ft unit reflects a net initial yield of 3.49 per cent and is broadly in line with the 31 March 2023 valuation.
UKCM purchased the unit in 2009 and in 2019 it completed a refurbishment of the property before letting it on a 10-year lease.
UKCM said it would use the sale proceeds to “enhance earnings by paying down a substantial amount” of its £93m floating rate rolling credit facility, currently costing 6.3 per cent per annum.
Will Fulton, lead manager at UKCM, said: “This disposal allows us to crystallise the value we have created through both the timely acquisition of an asset in a prime London logistics location and our subsequent active asset management of the property, including a long lease to a global e-commerce business. We will use proceeds of the sale to enhance earnings, primarily by paying down some short-term debt.”
Dale Bills, spokesperson for Covent Garden IP, said: “The purchase of Wembley180 furthers our efforts to make prudent, long-term investments. Earnings from our investments are expected to support the religious and charitable work of The Church of Jesus Christ of Latter-day Saints in the United Kingdom.”
DTRE advised UKCM on the sale and DWS and Knight Frank advised the purchaser.
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