UK real estate investment trust LondonMetric Property has added six single-let urban logistics properties worth £78m (€93.3m) to its portfolio and sold a non-core asset in separate deals.
LondonMetric said the 526,000sqft portfolio was acquired from a FSTE 100 pension fund at a price that reflects a blended net initial yield of 5.8% which rises to 6.9% over the next two years.
The properties, located in Stafford, Banbury, Romford, Southampton, Bristol and Aberdeen, generate income of £4.8m per annum, equating to an average rent of £9.20 per sqft, which is expected to rise to £5.8m per annum over the next two years.
Separately, LondonMetric has sold an office asset in Edinburgh let to HSBC for £6m. The Edinburgh office asset was gained following LondonMetric’s acquisition of the smaller listed competitor CT Property Trust (CTPT) last year.
LondonMetric said it has now sold 14 of the 16 non-core CTPT assets at an average of 18% above their original underwrite values.
Andrew Jones, CEO of LondonMetric, said: “This was a very rare opportunity to acquire off-market a high-quality portfolio which is immediately earnings accretive. The well located, mission-critical assets, offer an attractive mix of near-term income growth and value-enhancing asset management opportunities.
“Logistics remains our strongest conviction thematic and now accounts for over 45% of our total portfolio.”
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