LondonMetric Property Plc has acquired two roadside assets for £11.6 million, reflecting a blended net initial yield of 5.1%.
The first transaction comprises a sale and leaseback portfolio of five roadside service centres in London for £9.6 million. The assets are let to Kwik Fit and located in Barnet, Whetstone, Hounslow, Hammersmith and Slough with each having strong underlying residual value supported by alternative use, principally residential.
LondonMetric has also purchased, via a forward funding contract, a prominent new build roadside asset in Rushden for £2.0 million let to Euro Garages. The property will consist of a convenience store, petrol station and drive through Starbucks and cover a two-acre site, where nearby industrial and high density residential more than underpins the purchase price.
Together, these roadside assets have a WAULT of 17 years and all benefit from contractual rental uplifts, said the compnay in a statement.
Separately, LondonMetric has completed the £13.3 million disposal of a regional distribution warehouse in Rotherham at a net initial yield of 5.0%. The sale of the warehouse, let to the Royal Mail for a further eight years, was announced in December 2019 subject to delayed completion.
“We continue to actively acquire long income properties in good locations that offer attractive triple net income and certainty of income growth. These assets are let on very long leases to strong covenants with whom we have established relationships and, following our recent equity fundraising, we are in legals on a number of other opportunities with similarly attractive characteristics,” said Andrew Jones, Chief Executive of LondonMetric.
Cushman & Wakefield acted for Kwik Fit on the sale and leaseback portfolio.