LondonMetric Property made acquisitions totalling GBP201.9m at an average yield of 7.9 per cent across its core out of town and retail distribution sub-sectors in the period from 1 October 2013 to 5 February 2014.
Total commercial disposals over the period totalled GBP129.7m (at an average yield of 6.0 per cent including GBP53.9m of sales across six retail assets (NIY 6.2 per cent), including the disposal of the Odeon in Dudley; and the GBP75.8m sale of Unilever’s headquarters in Leatherhead (NIY 5.9 per cent).
Residential sales totalled GBP82.5m (NIY 2.5 per cent) across 167 units, 3.1 per cent ahead of September valuations.
Letting at One Carter Lane of 16,500 sq ft to MFS bringing its total office occupation in the building to 41,200 sq ft. The building is now 72 per cent pre-let with average rents of GBP56.00 psf on an average lease term of 20 years (15 years to first break).
Eight asset management transactions increased net rental income by GBP1.0m per annum with an additional 19 deals in solicitors’ hands.
Andrew Jones (pictured), chief executive of LondonMetric, says: “The pace of our investment activity has been intense with over GBP1bn (LondonMetric share) of purchases and sales transacted since the merger. Our core out of town retail and distribution portfolios now account for 85 per cent of our total property portfolio, following the recent announcement of two large off market portfolio acquisitions. Our ability to consistently source off market deals remains a considerable competitive advantage in a market experiencing increasing liquidity.
“The significant repositioning has allowed us to move towards full dividend cover by the end of the financial year. Our acquisitions have been made at 255bps higher than our disposals, contributing an additional GBP5.7m to our rent roll and at the same time extending our unexpired lease terms by two years. These have not only been earnings accretive but also provide us with future growth opportunities as we increase our focus on asset management and development initiatives.”