Jermyn Investment Properties has paid Friends Provident £14.8m for a mixed portfolio of 16 properties in a deal which increases the company’s retail and industrial holdings.
Director Paul Reed said Jermyn wanted to expand its retail exposure in affluent locations and increase its shed investments in good distribution areas. “We are pushing our weighting towards retail and industrial where we think there will be rental growth,” he added.
The deal, which includes distribution sheds at Heathrow, Gatwick and Warrington, shops in York, Winchester, Kingston-upon-Thames and Horsham and an office block in Chelmsfod, reflects a 9.77% yield.
Jermyn’s acquisition will be funded by a £10.5m loan facility and the balance of £4.315m via a placing and open offer of 2.75m new ordinary shares at 190p. Gearing will rise to around 89%.
The acquisition is in line with Jermyn’s strategy of acquiring property portfolios with above average yields. Last month Friends Prov sold a portfolio of 11 London properties to Benchmark for £82m.
EGi News 22/07/97
