LondonMetric Property Plc has sold two long income assets let to M&S and Wickes in Derby for a combined consideration of £11.1 million at a blended NIY of 6.0% and a 7% surplus to the last reported book value.
The 15,000 sq ft M&S Foodhall sold by way of a forward commitment to an overseas private investor for £6.2 million. The asset is let for 15 years at a rent of £25 psf. Completion of the sale is expected at the end of the year.
The 34,000 sq ft Wickes store sold to an overseas property company for £4.9 million. The property was acquired by LondonMetric three years’ ago as part of a portfolio and is let for a further 11 years.Completion of the sale is expected in August.
“These disposals reflect the growing demand for good quality long income real estate, for which we continue to receive attractive approaches. We constantly look to re-balance our portfolio and will recycle the sale proceeds into opportunities in strong geographies that provide certainty of income and income growth,” said Andrew Jones, Chief Executive of LondonMetric.