UK REIT LondonMetric Property has acquired a portfolio of six high-quality urban logistics properties in the UK for £78 mln (€93 mln) from a FTSE 100 pension fund.
The initial net initial yield for the property portfolio is 5.8%, but it is expected to increase to 6.9% within the next two years.
The properties, totaling 48,867 m2, are located in Stafford, Banbury, Romford, Southampton, Bristol and Aberdeen. They are leased to strong tenants including General Electric, Thales, EVRI, Macarthys Laboratories, and KCA Deutag, with a weighted average lease term of 10 years.
The annual rental income from the property portfolio is currently £4.8 mln (€5.7 mln) and is expected to increase to £5.8 mln (€6.9 mln) per year within the next two years.
Andrew Jones, CEO of LondonMetric, commented: ‘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.’
LondonMetric is also continuing to sell non-core assets, having recently sold an office property in Edinburgh, let to HSBC for a further five-year’ term, for £6 mln (€7 mln). This sale is part of a broader program to dispose of non-core assets acquired through the CTPT takeover.
LondonMetric has sold 14 of the 16 non-core assets, acquired through the CTPT takeover, at an average price that was 18% higher than their original estimated value.
LondonMetric was advised by Cortex Partners and the seller was advised by Clay Street.
