LondonMetric Property has acquired seven warehouses for £70m and sold 10 non-core assets for £50m.
The warehouses, which have a WAULT of 15 years, were acquired at a blended net initial yield of 5.8%, rising to a minimum of 6.1% over the next two years and 6.5% after five years, with 91% of rent subject to open market reviews.
In addition to a 182,000 sq ft regional logistics warehouse in Avonmouth let to Farmfoods, acquired through a sale and leaseback for £26.4m, and a 211,000 sq ft fully let urban logistics park in Wednesbury, purchased from a pension fund for £25m, LondonMetric has acquired five trade warehouses totalling 113,000 sq ft in Leeds, Derby, Swindon, Bolton and Farnham for £18.9m.
The disposals consist of 10 former LXi assets and a former CTPT asset, which were sold at a blended net initial yield of 7.2% and in line with 31 March 2024 book values.
LondonMetric sold a 169,000 sq ft Compass training centre in Milton Keynes for £23.7m, a 34,000 sq ft car showroom in York let to Vertu for £10.5m, a 34,000 sq ft self-storage asset in Basildon let to Lok’nStore for £10m, seven care homes for £3.2m and an 18,000 sq ft Nissan car showroom in Doncaster, which sold for £2.5m.
Andrew Jones, chief executive of LondonMetric, said: “We have been very clear on our desire to monetise some assets acquired from our corporate takeovers. We have now sold circa £100m of LXi assets, with 13 of the 16 non-core CTPT assets also sold at an average of 14% above our original underwrite values. We have successfully reinvested these proceeds into high quality properties, in stronger sectors that will deliver accelerated income growth.”
