LondonMetric Property has sold four retail properties for a combined £22.2m, reflecting a net intial yield of 4.6%.
It has sold two Marks & Spencer food stores in Haslemere and Ferndown to a local authority for £14.68m, reflecting a net initial yield of 4%. The properties have a WAULT of 15 years.
In Leicester, it has sold a Matalan-let unit to private investors for £3.4m, at a NIY of 5%. The sale will complete in June 2021. It has also sold a property occupied by Boots and Spar to a local buyer for £4.1m at a NIY of 6.5%.
The sales were agreed at 1.3% above March 2020 book value, delivering £4.1m profit on cost and an ungeared IRR of 11% per annum.
LondonMetric has also acquired three BP/M&S convenience service stations in Brentwood, Pevensey and Lewes for £10.8m, 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 £540,000 per annum, with fixed rental uplifts.
Andrew Jones, chief executive at LondonMetric, said: “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.”
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