LondonMetric has completed a £62m sale and leaseback of five Waitrose supermarkets.
The stores – located in Keynsham, Somerset; Malmesbury, Wiltshire; Paddock Wood, Kent; Towcester, Northamptonshire; and Yateley, Hampshire – range from 27,000 sq ft to 43,000 sq ft. LondonMetric has agreed 20 year leases, with a 15-year break.
It has also acquired a 32,000 sq ft logistics unit in Walthamstow, E17, for £10.9m. The building is let to Ocado for a further eight years, with passing rent 20-25% below market rent and an open-market review in 2023 expected to capture significant rental reversion.
The assets generate rent of £3.4m per annum, reflecting a blended net initial yield of 4.35% and a reversionary yield of 5%.
LondonMetric chief executive Andrew Jones said: “We live in a world of continuing disruption, which is exposing both winning and losing strategies almost on a daily basis.
“These investments will increase our exposure further to the winning sectors and occupiers, with Waitrose now a top-10 occupier and Ocado a new addition to our customer base.”
LondonMetric was advised by Bruce Gillingham Pollard on the sale and leaseback portfolio and by Stonehill Partners on Walthamstow.
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