LondonMetric Property PLC GBP22M OF DISPOSALS & GBP11M OF ACQUISITIONS
RNS Number : 1299C
LondonMetric Property PLC
15 October 2020
15 October 2020
LONDONMETRIC SELLS GBP22 MILLION OF CONVENIENCE RETAIL
AND ACQUIRES THREE CONVENIENCE SERVICE STATIONS FOR GBP11
LondonMetric Property Plc ("LondonMetric") announces that it has
sold four retail properties from its long income portfolio for a
combined consideration of GBP22.2 million, reflecting a blended NIY
of 4.6%. It also announces the acquisition of three convenience
service stations for GBP10.8 million, reflecting a NIY of 4.7%.
In Haslemere and Ferndown, it has sold two M&S food stores
to a local authority for GBP14.68 million, reflecting a NIY of
4.0%. The properties have a WAULT of 15 years.
In Leicester, a stand-alone Matalan unit has been sold to
private investors for GBP3.4 million, reflecting a NIY of 5.0%. The
store has less than three years left to expiry and has
redevelopment opportunities. Completion of the sale has been
delayed until June 2021.
On the Isle of Man, a property occupied by Boots and SPAR has
been sold to a local purchaser for GBP4.1 million, reflecting a NIY
of 6.5%. The Boots was re-geared recently onto a new 10 year
The disposals crystallise a GBP4.1 million profit on cost and
deliver an ungeared IRR of 11% pa since purchase. Total receipts
upon completion will be 1.3% above March 2020 book value.
Separately, LondonMetric has acquired three BP/M&S
convenience service stations in Brentwood, Pevensey and Lewes for
GBP10.8 million, reflecting a NIY of 4.7%, rising to 5.2% over five
years. The portfolio is let to BP for another 16 years and
generates a rent of GBP0.54 million p.a., with fixed rental
uplifts. Vacant possession value is materially above the purchase
Andrew Jones, Chief Executive of LondonMetric, commented:
"In a zero interest rate environment, well-let real estate
continues to be in demand and so we have reacted to attractive
offers to monetise select assets, including further non-core
properties acquired through the Mucklow deal.
"These are all good sales which, together with our latest
acquisition of three quality assets let to BP, improves our income
granularity, lease lengths and credit whilst providing better
certainty of income growth and geographical focus."
For further information, please contact:
LondonMetric Property Plc
Andrew Jones / Martin McGann / Gareth Price
Tel: +44 (0) 20 7484 9000
Dido Laurimore / Richard Gotla / Andrew Davis
Tel: +44 (0) 20 3727 1000
About LondonMetric Property Plc
LondonMetric is a FTSE 250 REIT that owns one of the UK's
leading listed logistics platforms alongside a diversified long
income portfolio. It owns and manages desirable real estate that
meets occupiers' demands, delivers reliable, repetitive and growing
income-led returns and outperforms over the long term. LondonMetric
has 16 million sq ft under management.
Further information is available at www.londonmetric.com
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(END) Dow Jones Newswires
October 15, 2020 02:00 ET (06:00 GMT)