LondonMetric Property has exchanged on the sale of the Odeon Multiplex Cinema in Dudley for GBP7.7m to clients of Aberdeen Asset Management.
The net initial yield of 5.95 per cent will fall to circa 5.8 per cent in June when a further top-up is due.
The 10 screen, 40,200 sq ft cinema is let to Odeon Cinemas for a remaining term of 24.7 years with no breaks. The lease is subject to annual rental increases of between one per cent and five per cent linked to the annual RPI index.
The property formed part of a portfolio of ten Odeon Multiplex Cinemas acquired by LondonMetric in November 2013 for GBP80.6m, reflecting an overall net initial yield of 7.2 per cent.
Andrew Jones, chief executive of LondonMetric, says: “This disposal further demonstrates strong institutional interest for regional property with long-dated income let to robust covenants. We will continue to recycle capital opportunistically with an increased focus on new investments in our preferred out of town and retail distribution sub-sectors.”
Knight Frank advised LondonMetric and Strutt & Parker advised Aberdeen.