LondonMetric sells off £34m of assets
LondonMetric has sold seven long income assets for £33.9m.
The combined assets generated £1.4m per year of rent and are fully let with a WAULT of 14 years. The sales reflect a blended net initial yield of 4.5% and a 28% profit on cost.
The sales comprise:
- a 42,000 sq ft self storage unit in Oldbury, sold for £5.7m, which LondonMetric acquired in 2019 for an allocated price of £4.2m;
- a 19,000 sq ft Aldi store in Weymouth, sold for £6.8m. LondonMetric developed in 2021 at a cost of £5.1m;
- a 53,000 sq ft urban warehouse let to Restore Scan in Salford, sold for £6.6m. LondonMetric acquired in 2016 for an allocated price of £4.7m;
- a 16,000 sq ft Premier Inn in Ringwood, sold for £8.65m (LondonMetric share: £4.3m), which LondonMetric funded the development of in 2019 at a cost of £4.2m;
- a 22,000 sq ft trade unit let to Jewson in Littlehampton, sold for £4m. LondonMetric acquired in 2018 for an allocated price of £3.3m; and
- a portfolio of two IMO car washes sold for £2.2m, which LondonMetric acquired in 2019 for £1.7m.
The firm has also completed on the sale of a new M&S Foodhall in Derby for £6.2m.
Andrew Jones, Chief Executive of LondonMetric, commented: “With the investment market strengthening over the past few months, we have taken advantage of this improved liquidity to opportunistically sell down some of our more mature long income assets.
“These sales crystalise strong returns and have been transacted at attractive yields and narrow discounts to book values.”