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LondonMetric Sells £11m of Long Income Assets

LondonMetric has announced that it has sold two long income assets let to M&S and Wickes in Derby for a combined consideration of £11.1 million at a blended NIY of 6.0% and a 7% 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 £6.2m. The asset is let for 15 years at a rent of £25 psf. Completion of the sale is expected at the end of the year. The other is a 34,000 sq ft Wickes store, sold to an overseas property company for £4.9m. 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, said: “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.”