LondonMetric Property has sold two assets for £28.2 million, reflecting a blended NIY of 4.6%.
The REIT sold a 61,000 sq ft retail park in Tonbridge, for £22.0 million, reflecting a NIY of 5.25%. Acquired for £11.5 million in 2013 when it was let to B&Q and Halfords, LondonMetric accepted a surrender on the B&Q, which was subsequently reconfigured and extended. The asset is fully let, with a WAULT of 11 years, to M&S, Halfords, Food Warehouse, Home Bargains, Carpetright, Costa and Jollyes.
During ownership, the rent has risen by 44% to £1.2 million per annum, with average rents increasing from £14.80 to £20.30 psf.
LondonMetric also divested a 30,000 sq ft of urban warehousing in Digbeth, Birmingham, for £6.2 million. The asset is let at a ‘hold over’ rent of £158,000 per annum and was acquired by LondonMetric in 2019 as part of the Mucklow acquisition.
The sales are 1% below LondonMetric’s 31 March 2022 book value and crystallise an ungeared IRR of 14%.
Proceeds will be used in the short term to pay down some of the company’s revolving credit facility, the company said.
Andrew Jones, Chief Executive of LondonMetric, commented: “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.”
