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Brixton has announced the sale of four industrial units to AEW Europe for the European Property Investors Special Opportunities Fund (EPISO) for a total of £70.25 mln (EUR 78.3 mln).

Brixton said it has also completed the letting of three units at its two-storey warehouse scheme X2, Heathrow and 2 units at The Heathrow Estate.

The assets acquired by EPISO are as follows:

Unit 3, Polar Park, Heathrow which was sold for £11,212,500, a net initial yield of 6.7%, assuming normal purchase costs of 5.725%. It is let to the Metropolitan Police Authority at a rent of £795,676pa (£13.25 per sq ft) and has an unexpired lease term of approximately 19 years.

A single unit at Oldfield Lane, Greenford was sold for £15,502,500, reflecting a net initial yield of 7.8%. It is let to Kuehne + Nagel Drinkflow Logistics Limited at a rent of £1,275,000pa (£9.56 per sq ft) and has an unexpired lease term of approximately 13 years.

Heathrow Gateway was sold for £43,535,000, reflecting a net initial yield of 8.1%. Unit 1 is let to Royal Mail Group Limited at a rent of £2,297,000pa (£10.23 per sq ft) and has an unexpired lease term of approximately 16 years. Unit 2 is let to Ceva Freight (UK) Limited at a rent of £1,453,000pa (£11.19 per sq ft). This unit has an unexpired lease term of approximately 13 years.

Brixton said the properties were sold at net initial yields between 6.7% and 8.1% and represent a reduction of between 10% and 22% to the December 08 valuation equating to an average of approximately 19%.

Peter Dawson, Brixton's CEO said: 'These sales are in line with our stated strategy of providing additional financial flexibility for the Group. We continue to progress other initiatives in particular debt refinancing and a potential equity raising with the aim of reaching a comprehensive long-term solution for all stakeholders'.

King Sturge and CBRE acted for Brixton, while EPISO was represented by Strutt & Parker.