LondonMetric Property has sold a portfolio of long income assets to Realty Income, an S&P 500 US REIT, for £40.9 mln (€48 mln), reflecting a blended NIY of 5.9%.
The transaction is in line with LondonMetric’s strategy of allocating further capital into the logistics and convenience grocery sectors, the company said.
The portfolio comprises six assets with a WAULT of 11 years and in particular a 106,000 sq ft retail asset in Leicester let to B&Q, Home Bargain and Smyths Toys; a 32,000 sq ft Wickes store in Halesowen; a 15,000 sq ft Aldi store in Hull and three KwikFit service stations.
The assets have delivered an ungeared IRR of 8% pa and the sale crystallises a total return on cost of 50% over an average hold period of six years. The disposal is at a 7% premium to the last reported book value.
Andrew Jones, Chief Executive of LondonMetric, commented: ‘These are all very well let assets that have delivered strong performances and their disposal crystallises an attractive surplus to our original purchase prices.’
LondonMetric was advised by Knight Frank.
