UK REIT LondonMetric Property has acquired two M&S stores in Newport, Isle of Wight and Kendal, Lancashire for £24.6 mln (€28 mln), reflecting a net initial yield of 5.45%.
The two edge of town centre properties are let to Marks & Spencer at a total rent of £1.4 mln (€1.6 mln) per annum, subject to annual rental uplifts of 2%. The existing lease runs for a further ten years.
'Consumer shopping patterns continue to evolve and we remain convinced that logistics and convenience retail are on-going beneficiaries of these changes as retailers look to invest further in their click and collect distribution infrastructure,' commented Andrew Jones, chief executive of LondonMetric. 'We have very good relationships with M&S and this is a rare opportunity to acquire two strongly performing stores.'
According to LondonMetric, the acquisition complement the company's existing convenience portfolio which now includes eight M&S stores and four Aldi stores, is valued at £85 mln (€96 mln) and has a WAULT of over 13 years.
LondonMetric was advised by Fawcett Mead and CBRE. Savills and HP4 advised the vendor.
