LondonMetric Property has sold 10 non-core properties for a total of £74.2m and acquired seven properties for £50.1m.

The sales reflect a net initial yield (NIY) of 6.9%, while the acquisitions reflect a NIY of 6.5% that is expected to rise to 7.2% over five years

Sales

The sales comprise:

• A 138,000 sq ft retail park in Coventry, sold for £37.3m reflecting a core NIY of 5.5% and a topped up NIY of 6.0%. It is let to 13 occupiers including Currys, Aldi, B&M and Dunelm at an average rent of £17.50 per sq ft and has a WAULT of six years. LondonMetric acquired the asset in 2010 for £18m and has extensively asset managed the park, delivering a profit on cost of 37%;
• An 82,000 sq ft Compass training office in Yarnfield, sold for £17.4m;
• A35,000 sq ft convenience retail park in Totton, sold for £9.5m;
• Two offices in Coventry, sold for £3.3m, which completes the sell down of the 11 offices acquired through the A&J Mucklow acquisition;
• Two Stonegate pubs in Preston and Southampton, sold for £3.3m;
• A former Dobbies garden centre in Huddersfield, sold for £3.1m; and
• Two parcels of development land, sold for £0.3m.

Since 31 March 2024, LondonMetric has sold 65 assets for £307m at a 2% premium to prevailing book value. 

Acquisitions

Separately, LondonMetric has acquired seven properties for £50.1m, reflecting a NIY of 6.5% which is expected to rise to 7.2% over five years. The deals comprise:

• Four Travis Perkins trade warehouses in Colchester, Lymington, Sheffield and Trowbridge, acquired for £16.4m through a 15-year sale and leaseback, with open market reviews;
• A Premier Inn hotel in West Thurrock with 193 bedrooms and let for a further 10 years with RPI linked reviews, acquired for £14.7m;
• A 54,000 sq ft convenience retail property in Andover, acquired for £12.2m and let for a further six years to Wickes, The Range and KFC, with open market reviews; and
• A new 22,000 sq ft M&S foodstore, pre-let on a 15-year lease, to be developed at a cost of £6.8m, reflecting a yield on cost of 7.8%.

Andrew Jones, chief executive, commented:

“We have again successfully disposed of non-core assets at prices in line with our valuations and reinvested into higher quality opportunities in strong conviction sectors, where rental growth prospects are more compelling.”