LondonMetric Property has sold seven long income assets for £33.9m, reflecting a blended NIY of 4.5% and crystallising a blended un-geared IRR of 10% and a 28% profit on cost.
The seven assets generate £1.4m per annum of rent and are fully let with a WAULT of 14 years. In Weymouth, LondonMetric has sold a 19,000 sq ft Aldi store for £6.8m (pictured), which was developed by the company in 2021 at a cost of £5.1m. In Salford, it has sold a 53,000 sq ft urban warehouse let to Restore Scan for £6.6m – LondonMetric acquired the asset in 2016 for an allocated price of £4.7m.
A 42,000 sq ft self-storage unit in Oldbury, which the company acquired in 2019 for an allocated price of £4.2m, has been sold for £5.7m; a 16,000 sq ft Premier Inn in Ringwood, which LondonMetric funded the development of in 2019 to the tune of £4.2m, sold for £8.65m (LondonMetric share £4.3m); and a trade unit let to Jewson in Littlehampton, which LondonMetric acquired in 2018 for £3.3m, has been sold for £4m.
The developer has also sold two IMO car washes, which it acquired in 2019 for £1.7m, for £2.2m, and announced it had completed on the sale of a new M&S Foodhall in Derby for £6.2m – exchange of the sale was previously announced in 2021.
Andrew Jones, chief executive of LondonMetric, said: “With the investment market strengthening over the past few months, we have taken advantage of this improved liquidity to opportunistically sell down some of our more mature long income assets. These sales crystalise strong returns and have been transacted at attractive yields and narrow discounts to book values.”
