LondonMetric offloads £58m of LXi assets

LondonMetric Property has sold 24 non-core properties for £57.9m, a 6% profit over prevailing book values. The assets have largely been sold from the LXi portfolio LondonMetric acquired on its takeover of the business earlier this year. Some 22 of the 24 assets are LXi properties. They include a 73,000 sq ft Asda in Halesowen, sold for £28m; a leisure asset in Hamilton, sold for £9m; five pubs across various locations, sold for a total consideration of £8.2m; 12 assisted living assets, sold for £6.7m; three Travelodge hotels in Perth, Carlisle and Stonehouse, sold for £4m; a small development site in London and a Boots in Bangor, sold for £2m. Since 31 March, LondonMetric has sold 52 assets for £209m, reflecting a net initial yield of 7.6%. Chief executive Andrew Jones said: “These are a series of excellent disposals reflecting our strategy of exiting assets and sectors that are incompatible with the listed REIT sector. We are redeploying the proceeds into winning sectors and higher quality assets that will provide better income reliability, predictability and trajectory.” LondonMetric has also acquired a retail park on the outskirts of Basildon for £10m – a 6.7% yield. The property is next to the A13 and an Aldi store and includes two drive throughs. It is let to Pets at Home, Poundland, Farmfoods, McDonald’s and KFC and has a WAULT of five years.