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Highlights
- £74.2 Million in Non-Core Property Sales, Reflecting a 6.9% NIY
- £50.1 Million Acquisition of New Assets with 6.5% NIY
- Strong Performance in Portfolio Optimisation and Strategic Investment
LondonMetric Property Plc (LSE:LMP) has revealed a series of property transactions, including the sale of ten non-core assets for a total consideration of £74.2 million and the acquisition of seven properties for £50.1 million. These moves reflect the company’s strategy to optimize its portfolio and pursue strategic growth opportunities.
LondonMetric has completed the sale of ten non-core properties for £74.2 million, of which the company’s share is £69.4 million, reflecting a net initial yield (NIY) of 6.9%. Notable sales include:
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Retail Park in Coventry: A 138,000 sq ft retail park sold for £37.3 million, achieving a core NIY of 5.5% and a topped-up NIY of 6.0%. The property, leased to 13 occupiers including Currys, Aldi, and Dunelm, was acquired in 2010 for £18 million, delivering a 37% profit on cost.
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Compass Training Office in Yarnfield: The 82,000 sq ft office was sold for £17.4 million.
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Convenience Retail Park in Totton: The 35,000 sq ft property was sold for £9.5 million.
Other properties sold include offices in Coventry, Stonegate pubs, a former Dobbies garden centre in Huddersfield, and parcels of development land.
Since 31 March 2024, LondonMetric has sold 65 assets for £307 million at a 2% premium to their book value, highlighting the company’s ongoing strategy to optimise its portfolio.
In a separate announcement, LondonMetric has acquired seven properties for £50.1 million, reflecting a 6.5% NIY, with expected growth to 7.2% over five years. The acquisitions include:
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Travis Perkins Trade Warehouses: Four properties across Colchester, Lymington, Sheffield, and Trowbridge acquired for £16.4 million through a 15-year sale and leaseback arrangement with open market reviews.
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Premier Inn Hotel: A 193-bedroom hotel in West Thurrock, acquired for £14.7 million with RPI-linked rent reviews.
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Convenience Retail Property in Andover: A 54,000 sq ft property let to Wickes, The Range, and KFC, acquired for £12.2 million with open market rent reviews.
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M&S Foodstore Development: A new 22,000 sq ft M&S foodstore, pre-let for 15 years, acquired for £6.8 million with a yield on cost of 7.8%.
