LondonMetric has sold two assets for £28.2m reflecting a blended net initial yield (NIY) of 4.6%.
In Tonbridge, LondonMetric sold a 61,000 sq ft retail park for £22m, reflecting a NIY of 5.25%. The REIT acquired the asset in 2013 for £11.5m when it was let to B&Q and Halfords. LondonMetric accepted a surrender on the B&Q store, which was subsequently reconfigured and extended and the asset is now fully let, with a WAULT of 11 years, to M&S, Halfords, Food Warehouse, Home Bargains, Carpetright, Costa and Jollyes. During its ownership LondonMetric has increased average rents at the park from £14.80/sq ft to £20.30/sq ft.
The REIT also sold 30,000 sq ft of urban warehousing in Digbeth, Birmingham, for £6.2m. LondonMetric said the proceeds from the sales would be used in the short term to pay down some of its revolving credit facility.
Andrew Jones, chief executive of LondonMetric, said: “These are strong, opportunistic sales and demonstrate that, despite macro challenges, there is still liquidity for very well located assets. At Tonbridge, the completion of our accretive asset management initiatives have delivered a high quality grocery-led asset that is let on long leases to an excellent line up of retailers.”
LondonMetric was advised by Morgan Williams on the Tonbridge sale and the purchaser was advised by CBRE.
