UK REIT LondonMetric Property has completed the acquisition of a portfolio of 27 assets leased to UK furniture retailer DFS from the administrator of Delphi Properties.

UK REIT LondonMetric Property has completed the acquisition of a portfolio of 27 assets leased to UK furniture retailer DFS from the administrator of Delphi Properties.

The purchase price comes to £175 mln (€210 mln), reflecting a net initial yield of 9.3%. The acquisition was made on behalf of LondonMetric's joint venture, LMP Retail Warehouse JV Property Unit Trust. LondonMetric owns a 30.5% interest in the partnership.

Simultaneously with the closing of the transaction, the joint venture has sold 10 of the portfolio assets in three separate transactions for a total of £47.1 mln, reflecting an overall net initial yield of 8.6%.

The remaining portfolio of 17 assets comprises 15 retail warehouses, one industrial unit and DFS' headquarters and distribution centre, covering a total area of 53,140 m2. The associated rent roll is £13 mln per annum with a running yield of 9% and a weighted average unexpired leased term of 16 years across all the leases.

LondonMetric is responsible for the management of the portfolio and receives a fee equivalent to 4% of rents received.

LondonMetric CEO Andrew Jones commented: 'This is a high-quality portfolio let to the UK's leading furniture retailer and one of our strongest and longstanding retail partners. The disposals reflect the increasing institutional appetite for long income assets let to the best occupiers.'

Cairn Capital and Savills advised the Joint Venture on the acquisition; Savills and Allsop advised on the portfolio sale of seven assets.