LondonMetric has acquired a retail asset and sold two properties in the UK for £23 mln (€29 mln) as part of a reorganisation of its portfolio.
LondonMetric has acquired a retail asset and sold two properties in the UK for £23 mln (€29 mln) as part of a reorganisation of its portfolio.
MIPP, the UK REIT's joint venture with Universities Superannuation Scheme (USS), exchanged contracts to acquire Liskeard Retail Park in Cornwall from a private property investor. The investment volume of £9 mln reflects a net initial yield of 6.2%.
The 4,000 m2 retail park is let to Homebase, Pets at Home and Argos at average annual rents of €145 per m2. The most recent letting was in 2010 at €178 per m2. The park has an unexpired lease term of 12.8 years.
As part of LondonMetric's strategy to become an equal shareholder in MIPP, the acquisition will be funded entirely from existing resources. Upon completion of the transaction LondonMetric's ownership in MIPP will rise to 46%.
The joint venture has also signed an extended a debt facility with pbb Deutsche Pfandbriefbank, extending the facility to £125 mln and the term to January 2020 to match the extended life of the joint venture. Assuming the facility is fully drawn, the cost of debt will decline to 3.7% from 4.3%.
DISPOSALS
At Crawley in the English county of West Sussex, LondonMetric has completed the disposal of its Forest House office to Mayfair Capital on behalf of the Property Income Trust for Charities for almost £13 mln, reflecting an exit yield to LondonMetric of 6.7%. The 3,530 m2 property is let in its entirety to Bard Limited until 2029.
At Launceston in Cornwall, LondonMetric completed the disposal of the Carpetright and Topps Tiles units adjacent to its Launceston Retail Park to a private investor for £1.5 mln, reflecting an exit yield of 7%. The average unexpired lease term is 7.4 years.
LondonMetric was advised by Strutt & Parker on Liskeard; by Savills on Crawley and by Allsops on Launceston.
