LondonMetric Property Plc disposes of non-core assets for £74.2 million

LondonMetric Property Plc (LON:LMP) has announced that it has sold ten non-core properties for a total consideration of £74.2 million (LondonMetric share: £69.4 million) and reflecting a NIY of 6.9%. The sales comprise:

·     A 138,000 sq ft retail park in Coventry, sold for £37.3 million reflecting a core NIY of 5.5% and a topped up NIY of 6.0%. It is let to 13 occupiers including Currys, Aldi, B&M and Dunelm at an average rent of £17.50 psf and has a WAULT of six years. LondonMetric acquired the asset in 2010 for £18 million and has extensively asset managed the park, delivering a profit on cost of 37%;

·      An 82,000 sq ft Compass training office in Yarnfield, sold for £17.4 million;

·      A 35,000 sq ft convenience retail park in Totton, sold for £9.5 million (£4.7 million at share);

·     Two offices in Coventry, sold for £3.3 million, which completes the sell down of the 11 offices acquired through the A&J Mucklow acquisition;

·      Two Stonegate pubs in Preston and Southampton, sold for £3.3 million;

·      A former Dobbies garden centre in Huddersfield, sold for £3.1 million; and

·      Two parcels of development land, sold for £0.3 million.

Since 31 March 2024, LondonMetric has sold 65 assets for £307 million (LondonMetric share: £302 million) at a 2% premium to prevailing book value. These disposals include the sale last year of a warehouse in Leicester let to UAV Tactical Systems which has now completed.

Separately, LondonMetric announces that is has acquired seven properties for £50.1 million, reflecting a NIY of 6.5% which is expected to rise to 7.2% over five years. The deals comprise:

·      Four Travis Perkins trade warehouses in Colchester, Lymington, Sheffield and Trowbridge, acquired for £16.4 million through a 15-year sale and leaseback, with open market reviews;

·     A Premier Inn hotel in West Thurrock with 193 bedrooms and let for a further ten years with RPI linked reviews, acquired for £14.7 million;

·     A 54,000 sq ft convenience retail property in Andover, acquired for £12.2 million and let for a further six years to Wickes, The Range and KFC, with open market reviews; and

·    A new 22,000 sq ft M&S foodstore, pre-let on a 15-year lease, to be developed at a cost of £6.8 million, reflecting a yield on cost of 7.8%.

Andrew Jones, Chief Executive of LondonMetric Property, commented:

“We have again successfully disposed of non-core assets at prices in line with our valuations and reinvested into higher quality opportunities in strong conviction sectors, where rental growth prospects are more compelling.”