LondonMetric Property has sold a pair of regional retail parks for a total of £43.4m.
It sold Westcroft retail park in Milton Keynes for £27.2m and the Mountbatten retail park in Southampton for £16.2m, reflecting a blended net initial yield of 5.7%.
CBRE Global Investors, on behalf of a client, bought the Mountbatten retail park. Aberdeen is understood to be the buyer of Westcroft.
LondonMetric bought the 77,000 sq ft Westcroft retail park in August 2013, reflecting a yield on cost of 7.2%.
It bought Mountbatten retail park in February 2013 as part of a larger portfolio, reflecting a net initial yield of more than 9%.
In both cases LondonMetric has undertaken a series of leasing deals that have lengthened the parks’ weighted unexpired lease terms.
The disposals crystallise a geared IRR in excess of 30%.
Andrew Jones, chief executive of LondonMetric, said: “Over the past two years we have successfully created significant capital value on these assets by lengthening and strengthening the income stream, creating a product that is attractive to institutional purchasers.
“We remain rational and so we will continue to recycle assets that have delivered on their business plans, and where we believe we can re-invest the proceeds into accretive opportunities.”
Edgerley Simpson Howe advised LondonMetric on Milton Keynes.
