LondonMetric sells three retail parks for €38m

LondonMetric Property has sold three retail parks in two separate transactions for a combined £31.6 mln (€38 mln).

LondonMetric has sold Nottingham Road retail park in Mansfield and St Mary's Road in Sheffield to Henderson Global Investors for £19.2 mln, reflecting a net initial yield of 6.77% and generating a blended ungeared total return of 14.0% per annum.

The 47,100 sq ft (4,375 m2) Mansfield asset was acquired in September 2010 for £7.25 mln with a void unit of 16,000 sq ft. Following a comprehensive refurbishment the entire accommodation was let to Currys PC World at a rent of £801,000 per annum. The unexpired lease term is 12.5 years. The sale price of £11.5 mln generates an ungeared total return of 11% per annum.

The 28,700 sq ft Sheffield asset was acquired in May 2011 for £2.4 mln having been void on acquisition. Following a material refurbishment the accommodation was let to both DFS and Wren Kitchens. The total rent is £572,000 per annum with an unexpired lease term of 13.6 years (11.9 years to first break). The sale price of £7.7 mln generates an ungeared total return of 20% per annum.

Separately, MIPP, LondonMetric's £150 mln joint venture with Universities Superannuation Scheme has completed on the sale of the Wickes unit in Oxford for £12.4 mln to Lothbury Investment Management, reflecting a net initial yield of 5.3%. The unit comprises 28,200 sq ft and is let at an annual rent of £698,000. LondonMetric recently re-geared the lease to 24.8 years term certain.

Strutt & Parker advised Henderson on the purchase of Mansfield and Sheffield. Harvey Spack Field advised MIPP and CWM advised Lothbury on Wickes, Oxford.