LondonMetric Property Plc has acquired convenience service stations for £21.9 million across three separate transactions, reflecting a blended NIY of 5.1%.
The transactions comprise:
– Four modern Co-op convenience service stations in Basingstoke, Dagenham and South Wales acquired for £12.5 million. The assets are let on a WAULT of 16 years, benefit from fixed rental uplifts and are 20% reversionary;
– Two London convenience service stations in Stamford Hill and Plumstead acquired for £5.4 million through a sale and leaseback arrangement with TG Convenience Stores. The properties are let for 20 years and benefit from inflation linked rent reviews; and
– A new Shell and Budgens service station in Worcester acquired for £4.0 million. The property is let to Motor Fuel Group for a further 23 years and benefits from inflation linked rent reviews.
The seven assets have a WAULT of 18 years and all benefit from contractual rental uplifts, said LondonMetric in a statement.
Separately, LondonMetric has sold £4.2 million of Kwik Fit service stations and IMO car washes at a NIY of 4.7%. These assets were originally acquired through larger portfolio transactions.
“These long income acquisitions offer attractive triple net income and are let on long leases to strong covenants with certainty of income growth. Given their strong locations, they are also underwritten by vacant possession value,” said Andrew Jones, Chief Executive of LondonMetric.