UK REIT LondonMetric Property has sold a retail park in England and one in Northern Ireland for a total of £55 mln (€63 mln).
In the first transaction, LondonMetric sold Pierpoint Retail Park in the eastern English town of King's Lynn to Tritax Property Income Fund. The purchase price of £24 mln reflects a net initial yield of 5.77%, which is in line with the March 2016 valuation.
LondonMetric had acquired the 6,874 m2 property for £15.1 mln in 2011. Since then the asset has undergone a complete refurbishment with six new lettings to Next, B&M, DFS, Tapi, Poundland and Greggs. The rental income has increased by 47% and the weighed average unexpired lease term (WAULT) has risen from 4.3 years to 13.3 years.
At Newry, Northern Ireland a local investor bought the 15,330 m2 Damolly Retail Park. The investment volume of £30.7 mln reflects a net initial yield of 7.4%, which is 3% below March 2016 book value. LondonMetric purchased the retail park in 2010 and has undertaken numerous asset management initiatives with new lettings to Lidl, Pets at Home, Home Bargains and Costa. The WAULT to first break is now 7.6 years.
LondonMetric was advised by CBRE on the Newry transaction, while Wilkinson Williams advised Tritax on Kings Lynn.
