LondonMetric Property has completed £78.5m of triple net lease acquisitions across five transactions.
The deal reflects a net initial yield of 5.5%, which is expected to increase to 6.3% over five years, and involves nine assets that add £4.6m of rent per annum and have a WAULT of 23 years.
The assets include a portfolio of five recently refurbished Premier Inn hotels let on new 30-year leases with five-yearly rent reviews linked to CPI, making Whitbread LondonMetric’s sixth largest occupier, accounting for £6.4m per annum of rent (1.5% of total rent) through its Premier Inn brand.
The assets also include a 80,000 sq ft logistics warehouse development funding with Harrison Developments in Malton, acquired for £10.7m and pre-let to Severfield Plc on a new 20-year lease with annual rent reviews linked to CPI, and a recently developed and reversionary 68,000 sq ft logistics warehouse in the West Midlands, acquired for £8.3m and let for a further 12 years to Bilco Access Solutions.
The final two assets are a 21,000 sq ft convenience development funding in Ludlow, acquired for £7.6m and pre-let to M&S on a new 15-year lease with five-yearly rent reviews linked to RPI, and a 40,000 sq ft convenience asset in Tunbridge Wells, acquired for £7.5m and let to Booker for a further 14 years with five-yearly fixed rent reviews of 3% pa.
Andrew Jones, chief executive of LondonMetric, said: “The Premier Inn transaction presented a great opportunity to acquire mission critical assets let on very long leases to a FTSE 100 credit with guaranteed rental growth. It adds to our NNN investment in budget hotels, which is benefitting from the ongoing shift in consumer spending towards experience, entertainment and convenience.
“The investments announced today all solidify and improve the granularity of our assets across our winning sectors and we expect to execute on further, similar opportunities in the near term.”
