LondonMetric Property has sold seven assets for £85m, reflecting a net initial yield of 5.3%.
The assets comprise: two Ramsay Health Care hospitals in Truro and Salford, let for a further 11 years and sold in a single transaction for £59.1m; two logistics warehouses in Ripon and Normanton, let for a further six years, which sold for £13m; a Lidl store in Basildon, which is let for a further 17 years, and sold for £8.8m; and two Travelodge hotels in Chippenham, which sold for £4.1m. Including these sales, LondonMetric has sold 32 assets for £175m in the current financial year.
LondonMetric also recently signed a £20m forward-funding deal on a 50,000 sq ft foodstore in Nuneaton, pre-let to Tesco on a 20-year lease, and is under offer on £140m of additional acquisitions, which primarily comprise long-let assets with occupiers including Lidl, M&S, Tesco and Waitrose.
Andrew Jones, chief executive of LondonMetric, said: “Despite a challenging macroeconomic backdrop, we have made excellent progress in selling further non-core assets over the past two months. Our activity has helped reduce our Ramsay exposure and further improve our NNN income quality, longevity and granularity.
“Whilst the investment market is generally quieter over the summer, we have been heavily engaged on reinvestment opportunities that have higher growth prospects, particularly those emanating from pension funds. We expect to transact on a number of these shortly.”
