Monday, 15 September 2014
LondonMetric and Universities Superannuation to acquire Liskeard Retail Park for €29.4 mln (UK)
LondonMetric Property Plc announces one acquisition on behalf of the Metric Income Plus Partnership, and the disposal of two wholly owned assets, with a total transaction value of £23.4 mln (approx. € 29.4 mln).
At Liskeard, MIPP, LondonMetric’s joint venture with Universities Superannuation Scheme has exchanged contracts to acquire Liskeard Retail Park in Cornwall from a private property company for £9 mln (approx. € 11.3 mln), reflecting a net initial yield of 6.2%.
The 43,800 ft² (approx. 4069 m²) retail park is let to Homebase, Pets at Home and Argos. The park has an unexpired lease term of 12.8 years.
As part of the Company’s strategy to become an equal shareholder in MIPP, the acquisition will be funded entirely by LondonMetric from existing resources. Upon completion of the transaction LondonMetric’s ownership in MIPP will rise to 46%.
The Joint Venture has also signed an extended debt facility with the Deutsche Pfandbrief Bank (PBB), extending the facility to £125 mln (approx. € 157 mln) and the term to January 2020 to match the extended life of the joint venture. Assuming the facility was fully drawn, the cost of debt will reduce to 3.7% from 4.3%.
LondonMetric has completed the disposal of its Forest House office to Mayfair Capital on behalf of the Property Income Trust for Charities for £12.9 mln (approx. € 16.2 mln), reflecting an exit yield to LondonMetric of 6.7%. The 38,000 ft² (approx. 3530 m²) property is let in its entirety to Bard Limited until 2029.
At Launceston, LondonMetric has completed the disposal of the Carpetright and Topps Tiles units adjacent to its Launceston Retail Park to a private investor for £1.5 mln (approx. € 1.9 mln), reflecting an exit yield of 7.0%. The average unexpired lease term is 7.4 years.