LondonMetric Property has carried out another acquisition and disposal a day after announcing the acquisition of a 27-asset portfolio in the UK.
LondonMetric Property has carried out another acquisition and disposal a day after announcing the acquisition of a 27-asset portfolio in the UK.
The UK REIT said on 20 December that it had exchanged on the acquisition of the Royal Mail Distribution Centre in Daventry and the disposal of Congleton Retail Park in Congleton.
In an off-market deal, LondonMetric agreed to buy the Royal Mail's main distribution centre at Daventry International Rail Freight Terminal (DIRFT) from Meghraj Properties. The investment volume of £36 mln (€43 mln) reflects a net initial yield of 6.7%.
The unit is let at a rental of £2.5 mln per annum with annual RPI-linked uplifts, capped at 3%, and an unexpired lease term of 9.7 years. The purchase will be funded from existing resources. The 25,325 m2 distribution centre is situated adjacent to the M1 motorway and is strategically located at DIRFT in Northamptonshire, one of the UK's primary distribution locations.
Separately, LondonMetric has exchanged on the sale of Congleton Retail Park in Congleton for £16.4 mln to Lothbury Investment Management, reflecting a net initial yield of 5.85%. The retail park comprises almost 6,000 m2 and is let to tenants including M&S Simply Food, Brantano, Laura Ashley, Carphone Warehouse and Boots with a weighted average unexpired lease term (WAULT) of 7 years. It was acquired in June 2011 for £14.9 mln.
On 19 December, LondonMetric Property said it had purchased a retail warehouse-dominated portfolio out of administration in the UK at a yield of 9.3%. The UK REIT acquired the portfolio of 27 assets for about €209 mln.
Following these transactions, LondonMetric's portfolio totals just over £1 bn, with a WAULT of 12.7 years and 99.4% occupancy. The distribution portfolio now totals £249 mln, representing 23% of the enlarged group’s portfolio.
Bushe Gower and CBRE advised LondonMetric on the Royal Mail Distribution Centre. Savills advised LondonMetric and Morgan Williams advised Lothbury on Congleton Retail Park.
