LONDON: LondonMetric Property Plc has successfully divested seven properties for a total of £31.3 million, achieving a 7.0% net initial yield (NIY) and securing a 3% profit above book values. The transaction included the sale of non-core LXi REIT assets valued at £18.3 million, which fetched a 5% premium over book values.
The sold assets feature a diverse range of properties:
– A substantial 106,000 sq ft Asda foodstore in Scotland, previously part of LXi’s portfolio, was sold for £10.5 million.
– An Ipswich retail park, spanning 41,000 sq ft and hosting tenants such as Wickes, Topps Tiles, McDonald’s, and Costa, garnered £10.2 million.
– Two Cazoo car showrooms located in Edinburgh and Cardiff, also former LXi assets, were sold collectively for £6.4 million.
– A B&M retail store in Stourbridge, a former Mucklow asset, changed hands for £2.8 million.
– A Travelodge hotel and an adjacent pub, part of the LXi collection, were sold for £1.4 million.
In parallel, LondonMetric has bolstered its portfolio by acquiring six urban warehouse assets for £45.0 million, reflecting a NIY of 6.1% and a reversionary yield of 6.6%. These acquisitions, with a weighted average unexpired lease term (WAULT) of 7.6 years, include:
– A 106,000 sq ft warehouse in Cardiff leased to Booker.
– A 95,000 sq ft warehouse in Milton Keynes occupied by Ingram Content Group.
– A 30,000 sq ft multi-let warehouse in York.
– A 28,000 sq ft multi-let warehouse in Reading.
– Two warehouses in Derby and Huntingdon, totaling 37,000 sq ft, acquired via a 15-year sale and leaseback agreement with Travis Perkins.
This series of transactions underscores LondonMetric’s commitment to optimizing its property portfolio and enhancing shareholder value through calculated asset management.