LondonMetric has bought two Marks & Spencer stores in Newport, Isle of Wight and Kendal, Lancashire for £24.6m – a net initial yield of 5.45%.
The two properties are led to Marks & Spencer at a total rent of £1.4m per annum, with annual rental uplifts of 2%. The leases run for another 10 years.
Andrew Jones, chief executive of LondonMetric, said: “Consumer shopping patterns continue to evolve and we remain convinced that logistics and convenience retail are on-going beneficiaries of these changes as retailers look to invest further in their click-and-collect distribution infrastructure.
“We have very good relationships with M&S and this is a rare opportunity to acquire two strongly performing stores.”
The assets, bought from a global investment manager who wished to remain anonymous, add to LondonMetric’s existing £85m convenience portfolio, which includes eight Marks & Spencer stores and four Aldi stores.
LondonMetric was advised by Fawcett Mead and CBRE; Savills and HP4 advised the seller.
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