LondonMetric Property Plc announces that it has exchanged on the sale of the Odeon Multiplex Cinema in Dudley for £7.7 million (approx. €9.3 million) to clients of Aberdeen Asset Management, reflecting a net initial yield of 5.95%, falling to c. 5.8% in June when a further top-up is due.
The 10 screen, 40,200 ft² (approx. 3,734 m²) cinema is let to Odeon Cinemas Limited for a remaining term of 24.7 years with no breaks. The lease is subject to annual rental increases of between 1% and 5% linked to the annual RPI index.
The property formed part of a portfolio of ten Odeon Multiplex Cinemas acquired by LondonMetric in November 2013 for £80.6 million, reflecting an overall net initial yield of 7.2%.
Andrew Jones, Chief Executive of LondonMetric, commented:
“This disposal further demonstrates strong institutional interest for regional property with long-dated income let to robust covenants. We will continue to recycle capital opportunistically with an increased focus on new investments in our preferred out of town and retail distribution sub-sectors.”
Knight Frank advised LondonMetric and Strutt & Parker advised Aberdeen.