LondonMetric Property has offloaded two long-income assets to overseas buyers, as chief executive Andrew Jones said the company sees “growing demand” for such properties.
The company has sold a 15,000 sq ft Marks & Spencer Foodhall in Derby for £6.2m to a private investor. The property is let to M&S for 15 years.
It has also disposed of a nearby 34,000 sq ft Wickes store to an overseas real estate company for £4.9m. It is let to the retailer for a further 11 years.
The deals reflect a blended net initial yield of 6% and a 7% surplus to last reported book value.
“These disposals reflect the growing demand for good quality long-income real estate, for which we continue to receive attractive approaches,” Jones said. “We constantly look to rebalance our portfolio and will recycle the sale proceeds into opportunities in strong geographies that provide certainty of income and income growth.”
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