LondonMetric sells GBP11m of long income assets
LondonMetric Property (LondonMetric) has sold two long income assets let to M&S and Wickes in Derby for a combined consideration of GBP11.1 million at a blended NIY of 6.0 per cent and a 7 per cent surplus to the last reported book value.
The disposals comprise:
• A 15,000 sq ft M&S Foodhall, sold by way of a forward commitment to an overseas private investor for GBP6.2 million. The asset is let for 15 years at a rent of GBP25 psf. Completion of the sale is expected at the end of the year
• A 34,000 sq ft Wickes store, sold to an overseas property company for GBP4.9 million. The property was acquired by LondonMetric three years’ ago as part of a portfolio and is let for a further 11 years. Completion of the sale is expected in August.
Andrew Jones, Chief Executive of LondonMetric, says: “These disposals reflect the growing demand for good quality long income real estate, for which we continue to receive attractive approaches.
“We constantly look to re-balance our portfolio and will recycle the sale proceeds into opportunities in strong geographies that provide certainty of income and income growth.”