LondonMetric Property announced the sale of 4 long income and leisure assets in separate transactions for £34.2m, reflecting a blended NIY of 4.1%, on Monday.
The sale price of the 4 assets combined represents a 25bps of yield compression as the price has appreciated 35% from LondonMetric’s 30 September 2021 book value.
The 4 properties used to generate £1.5m in rent each year out of which £1.2m was LondonMetric’s share. The assets had a WAULT of 18 years and the sale notes a blended ungeared IRR of 25%.
LondonMetric Assets Sold
Metric Income Plus is LondonMetric’s joint venture with Universities Superannuation Scheme which has sold a 32,000sqft food shop in Ashford, Middlesex. Lidl just negotiated a new 25-year lease on the space that was formerly used by Hitchcock & King.
A 34,000 sq ft refurbished NNN Retail asset in Cardiff was just re-let to Sofology and Tapi with an 8-year WAULT.
A pub in Greenwich that was previously acquired as part of the Savills IM portfolio acquisition in December 2021 by LondonMetric has been leased to Spirit Group for another 22 years.
Euro Garages was granted a 30-year WAULT on a petrol filling station and convenience store in Rushden.
Universities Superannuation Scheme, created in 1974 as the major pension scheme for universities and other higher education institutions in the UK, is one of the largest private pension schemes in the UK, with total fund assets of roughly £82bn as of 31 March 2021.
Andrew Jones, Chief Executive Officer, LondonMetric, stated, “We have seen significant interest from the investment market for our long income assets, which has prompted us to dispose of these assets.”
“Strong and long let assets have seen material yield compression over the last six months, and we will continue to respond to various approaches. “
LondonMetric Property shares were trading up 0.4% to 245p following the group’s announcement of selling off 4 assets.
