LondonMetric Property Plc announces that it has exchanged contracts to acquire a portfolio of ten out of town Odeon multiplex cinemas from Odeon Property Group LLP for £80.6 million (net of corporate acquisition costs). The acquisitions will be funded by a term facility of £43.5 million provided by Lloyds Bank plc.
The portfolio totals 384,220 ft² and is let to Odeon Cinema Limited for a remaining term of 24.9 years subject to annual rental increases of between 1% and 5% linked to the annual RPI index. The total initial rental income is £5.9 million per annum. The cinemas are located in: Chelmsford, Derby, Huddersfield, Lee Valley (London), Merryhill (Dudley), Preston, Tamworth, Taunton, Telford and Warrington. They either adjoin or are in close proximity to a retail park or shopping center, and in 2012 attracted a combined attendance of 3.8 million visits.
Andrew Jones, Chief Executive of LondonMetric, commented: “This is a very attractive acquisition of a well let portfolio within our out of town sector. The transaction offers us long and strong income with value enhancing asset management opportunities and increases our exposure to the leisure sector, which is a growing component of the retail experience. We are pleased to be adding Odeon, one of the sector’s most dominant operators with a 26% market share, to our tenant line up.”
Source: FTI Consulting