LondonMetric acquires GBP22m of long-let convenience service stations and sells GBP4m of Kwik Fit and car wash assets
LondonMetric Property (LondonMetric) has acquired GBP21.9 million of convenience service stations across three separate transactions reflecting a blended NIY of 5.1 per cent. The seven assets have a WAULT of 18 years and all benefit from contractual rental uplifts.
The transactions comprise:
Four modern Co-op convenience service stations in Basingstoke, Dagenham and South Wales acquired for GBP12.5 million. The assets are let on a WAULT of 16 years, benefit from fixed rental uplifts and are 20 per cent reversionary;
Two London convenience service stations in Stamford Hill and Plumstead acquired for GBP5.4 million through a sale and leaseback arrangement with TG Convenience Stores. The properties are let for 20 years and benefit from inflation linked rent reviews; and
A new Shell and Budgens service station in Worcester acquired for GBP4.0 million. The property is let to Motor Fuel Group for a further 23 years and benefits from inflation linked rent reviews.
Separately, LondonMetric has sold GBP4.2 million of Kwik Fit service stations and IMO car washes at a NIY of 4.7 per cent. These assets were originally acquired through larger portfolio transactions.
Andrew Jones, Chief Executive of LondonMetric, says: “These long income acquisitions offer attractive triple net income and are let on long leases to strong covenants with certainty of income growth. Given their strong locations, they are also underwritten by vacant possession value.”