LondonMetric sells Unilever HQ to Malaysian investors

17th Dec 2013 07:25

FTSE 250 retail investment trust LondonMetric has sold Unilever's head office for 75.8m pounds to Malaysian Shariah-compliant investment group. The sale generated a £15.65m profit for a property purchased in June 2012, which represented a net initial yield of 5.9%, an ungeared total return of 16.1% per annum and a geared internal rate of return of 32.8%.LondonMetric said the sale was part of its strategy to focus less on office space and more on out-of-town retail and distribution.Following the disposal, its office investments will account for 7.4% of the entire portfolio, comprising of Marlow International in Marlow and Forest House and Elm Court Park in Crawley with a combined value of £74.1m.Chairman Patrick Vaughan said: "The successful disposal of Unilever House ahead of the September valuation is evidence of strong investment demand for quality offices outside of London."The team's ability to capture an attractive yield on this disposal provides us with further scope to recycle our investment funds into opportunities in line with our strategy and in our favoured sectors of out of town and retail distribution, where we believe we can deliver attractive long-term growth." Kuala Lumpur-based buyer Lembaga Tabung Haji is the Malaysian hajj pilgrims fund board, with £6bn of assets under management.Situated in Leatherhead, Surrey, Unilever House is a 176,100 square-foot office campus housing Unilever's UK & Ireland headquarters, which was acquired by LondonMetric in June 2012 for £61.15m.OH