LondonMetric divests three UK retail assets for £60.9m
Real estate firm LondonMetric Property has divested three retail assets parks in Christchurch, Maidstone and Bedford for £60.9m.
At Christchurch, the British real estate company sold a 104,000ft2 retail park for £34.5m to unnamed clients of Orchard Street Investment Management.
LondonMetric said the sale reflected a net initial yield (NIY) of 5.65%.
The Christchurch property was purchased by it for £27.1m in 2013 and since then it housed Costa, Subway, Home Bargains and DFS. Its weighted average unexpired lease ter (WAULT) is seven years.
LondonMetric stated that it had sold a property owned by its DFS joint venture at Maidstone for £12.0m to unnamed clients of Helix Property Advisors. The real estate firm got its share of £3.7m from the sale.
Acquired in March 2014, the Maidstone property was part of the DFS stores chain.
At Bedford, LondonMetric earned £14.4m by selling the Alban Retail Park to Tritax Property Income Fund. The 66,000ft2 retail park was bought for £9.2m in 2010.
LondonMetric CEO Andrew Jones called the investments to be successful and that the company would carry on selling well let mature retail properties after completion of their business plans.
Jones added: “Our retail park investments have halved over the last two years and now represent 13% of our total portfolio.
“The sale proceeds will be invested into our logistics investment and development programmes where rental growth prospects look more attractive.”
Last month, LondonMetric acquired two distribution warehouses in the UK for a combined price of £16m. One is a regional distribution warehouse bought in Wakefield for £9.5m while the other is a last mile distribution warehouse acquired for £6.3m in Dartford.
Image: LondonMetric made £60.9m from the sale of three retail assets. Photo: courtesy of stockimages/Freedigitalphotos.net.