LondonMetric, the new combine formed from the merger of London & Stamford Property and Metric Property Investments, has completed the acquisition of a portfolio of six retail warehouse assets for a total of £92.4 mln (€108 mln).
LondonMetric, the new combine formed from the merger of London & Stamford Property and Metric Property Investments, has completed the acquisition of a portfolio of six retail warehouse assets for a total of £92.4 mln (€108 mln).
The UK REIT said the deal reflects an average net initial yield after purchasers’ costs of 7.8%.
The portfolio is being acquired from clients of Aviva Investors and comprises six out-of-town retail parks all located within approximately 100 miles of London.
The acquisition, which was first announced at the end of January, delivers income of circa £7.5 mln, or an initial cash return of over 12% when combined with the group's existing debt facilities.
The acquisition will be funded from existing resources including a revolving credit facility with Lloyds Banking Group. Returns will continue to grow as fixed rental uplifts on 50% of the income fall due, the company said.
The six assets provide a total area of nearly 400,000 sq ft (37,000 m2). The schemes are Christchurch Retail Park (Christchurch), B&Q (Leicester), Dunstable Retail Park (Luton), Cairngorm Retail Park (Milton Keynes), Mountbatten Retail Park (Southampton) and the B&Q/Halfords units (Tonbridge).
LondonMetric's retail investment portfolio comprises 31 assets with a combined value of around £335 mln, representing 33% of the enlarged LondonMetric portfolio. The retail portfolio’s occupancy is 99%.
Cushman & Wakefield advised LondonMetric. Wilkinson Williams advised the clients of Aviva Investors.
