The Japanese owner of auto repair chain Kwik-Fit has sold 21 UK roadside centres to LondonMetric Property as part of a sale-and-leaseback deal.
LondonMetric bought the freeholds from Japan’s Itochu Corporation for £18m just before the coronavirus lockdown, reflecting a 5.4% net initial yield.
This exceeded the portfolio’s initial price tag of around £16.2m, which represented 6% net initial yield.
Itochu instructed Cushman & Wakefield to sell the freeholds earlier this year as a long-dated, index-linked income play.
The properties are let to Itochu’s UK topco, European Tyre Enterprise, for 15 years with five-yearly rent reviews linked to the Consumer Price Index.
The centres continue to trade as essential services during the government-imposed lockdown.
According to the portfolio’s marketing material, the centres bring in passing rent of just over £1m, reflecting £8.59 per sq ft.
David Haynes, international partner at C&W, said: “The portfolio attracted competitive bidding, demonstrating the demand for well let industrial investments secured to strong covenants.”
The 21 locations are:
- Acle
- Aylesbury
- Banbury
- Biggleswade
- Braintree
- Chesham
- Chester-le-Street
- Chipping Norton
- Colchester
- Dereham
- High Wycombe
- Holt
- Huntingdon
- Maresfield
- Milton Keynes
- Norwich (x2)
- Rainham
- Royston
- Stevenage
- Windsor
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