LondonMetric sells distribution assets

4th Jun 2013 07:18

LondonMetric Property is selling 11 distribution assets for 247.56m pounds to a joint venture between Prologis Europe and Norges Bank Investment Management.Ten of the assets were held in a 50% joint venture with Green Park Investments and the former Focus Distribution Centre at Tamworth which was wholly owned by LondonMetric. The 2.4m sq ft portfolio is primarily let to third party logistics operators. LondonMetric's share of net disposal proceeds, after repayment of debt and fees, is £68.3m.The company said following the transaction it will focus on the distribution market, placing a greater emphasis on retailer links starting with its existing retained distribution portfolio. Its portfolio includes of 1.4m sq ft which is let to retailers such as Primark, the Co-operative and Tesco."This disposal is in line with our strategy to focus on distribution assets in the retail sector," said Chairman Patrick Vaughan."We know this sector well, and believe this company derives significant benefit from our strong retailer relationships. We have a number of investment acquisition opportunities agreed and in solicitors' hands which will allow us to reinvest, replace and grow our income quickly in an area where the newly merged business has competitive advantages."RD