LondonMetric sells retail properties and acquires warehouse assets (GB)

LondonMetric sells retail properties and acquires warehouse assets (GB)

LondonMetric Property Plc (LondonMetric) has sold seven properties in separate transactions for c. €36.6m, reflecting a blended NIY of 7.0% and a 3% profit over prevailing book values. They include c. €21.4m million of non-core LXi REIT assets, which have been sold at 5% ahead of prevailing book values.


The sales comprise a 31,000m2 Asda foodstore in Scotland (former LXi asset), a 3,800m2 retail park in Ipswich let to Wickes, Topps Tiles, McDonalds and Costa, two former Cazoo car showrooms in Edinburgh and Cardiff (former LXi assets), a B&M retail store in Stourbridge (former Mucklow asset), and a Travelodge hotel and a pub (former LXi assets).


Separately, LondonMetric has acquired six reversionary urban warehouse assets for c. €52.7m reflecting a NIY of 6.1% and a reversionary yield of 6.6%.


The assets acquired have a WAULT of 7.6 years and comprise a 9,847m2 warehouse in Cardiff let to Booker, an 8,825m2 warehouse in Milton Keynes let to Ingram Content Group, a 2,787m2 multi-let warehouse in York, a 2,601m2 multi-let warehouse in Reading, and two warehouses totalling 3,437m2 in Derby and Huntingdon, acquired through a 15-year sale and leaseback with Travis Perkins.


Andrew Jones, Chief Executive of LondonMetric, commented: “We are delighted to have exited these non-core assets and reinvested the proceeds into much higher quality assets, which offer superior rental growth potential. We are continually looking to upgrade the quality of our portfolio and exit lower growth assets outside of our core sectors or those that do not meet our return criteria. As such, we expect to announce further disposals shortly.


Image source - Pexels.


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