LondonMetric Property has sold two retail assets for a combined £32m.
It has sold its DFS property in Enfield to a UK institution. The asset has been held in joint venture with its share of the property valued at £7.5m. The 32,000 sq ft unit is let at a rent of £1.7m per annum. The price paid reflects a yield of 6.6%.
The company has made a 19% profit on cost and a geared IRR of 30% having bought the property in March last year.
Separately, LondonMetric has sold Watling Retail Park in Cannock for £7.5m to another UK institution reflecting a net initial yield of 6.1%. The 25,000 sq ft retail park was developed by LondonMetric in November 2012 and is fully let to DFS, Carpetright and Porcelanosa. The disposal provides the company with a profit on cost of 32% and a geared IRR of 31%.
Andrew Jones, chief executive of LondonMetric, said: “We view the retail property sector opportunistically and will recycle assets which have delivered on their business plans. Both of these assets have generated very strong returns for us and we will continue to capitalise on the high demand from institutions for strong, well-let real estate.”
LondonMetric advised the joint venture on Enfield and Strutt & Parker advised LondonMetric on Cannock.
