UKCM sells Wembley logistics asset to the LDS Church for £74m
UK Commercial Property REIT Limited has sold its 186,455 sq ft Wembley180 logistics asset in London to Covent Garden IP Limited (CG), a registered charitable company. UKCM will get a consideration of £74 million, which reflects a net initial yield of 3.49% and is broadly in line with the 31 March 2023 valuation.
UKCM has owned the property since 2009 and completed a refurbishment of the asset in 2019 when it let the unit to a global e-commerce company until 2029. UKCM will primarily use the proceeds to enhance earnings by paying down a substantial amount of its £93 million floating rate Rolling Credit Facility (“RCF”), currently costing 6.3% pa.
Will Fulton, Lead Manager at UKCM, comments: “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.”
The 186,455 sq ft Wembley180 logistics asset in London. © UK Commercial Property REIT
DTRE advised UKCM. DWS and Knight Frank advised the purchaser on the sale.