Mormon church buys London logistics investment for £74m

UK Commercial Property REIT has sold a 17,322 sq m logistics asset in Wembley, London to a charitable company owned by the Mormon Church for £74 million.

The sale price reflects a net initial yield of 3.49% and is broadly in line with the 31 March 2023 valuation.

Covent Garden IP, a charitable company registered with the UK’s Charity Commission invests in and holds commercial property for the benefit of the The Church of Jesus Christ of Latter-day Saints in the United Kingdom.

UKCM, which has owned the property since 2009 and refurbished it in 2019 when it let the unit to a an e-commerce company until 2029, will mainly use the proceeds to pay down a substantial amount of a £93 million floating rate rolling credit facility, currently costing 6.3% pa.

“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,” said Will Fulton, lead manager at UKCM.

Dale Bills, spokesman for CG, comments: “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.”