LondonMetric Property has sold a 70,000sqft retail park in south-west England to an unnamed investor for £21.9m (€24.6m).
The FTSE 250 REIT acquired Launceston Retail Park in August 2010 for £13.5m and formed part of the original Metric portfolio. LondonMetric said it executed various asset management initiatives, which have increased the number of units from five to nine.
The property has generated a profit on cost of 13% and an ungeared return of 7% per annum, and has been sold above March 2018 book value to a long-term investor, LondonMetric said.
Andrew Jones, the chief executive of LondonMetric, said: “This disposal is in line with our strategy to reduce our ownership of operational retail assets once business plans have been executed. Following the sale, we will own only four retail parks.
“Demand for physical retail assets continues to polarise and so future investments will be targeted within the logistics and convenience sectors where income growth prospects are superior.”
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