LondonMetric Property has sold Cairngorm Retail Park in the English town of Milton Keynes for £21.8 mln (€27.4 mln), reflecting a net initial yield of 6.1%.
LondonMetric Property has sold Cairngorm Retail Park in the English town of Milton Keynes for £21.8 mln (€27.4 mln), reflecting a net initial yield of 6.1%.
The 5,330 m2 retail site has been acquired by Royal London Asset Management. The shop units are let to five furniture and furnishings retailers at an average rent of €264 per m2.
UK REIT LondonMetric bought the site in January 2013 as part of its first purchase following the merger of London & Stamford Property and Metric Property Investments. The six retail warehouse assets comprising the Saturn portfolio were acquired for a total of €108 mln.
Cushman and Wakefield advised LondonMetric on the sale, while Strutt & Parker advised Royal London.
The company has also exchanged contracts to acquire a 15-hectare site in Bedford (UK) from the borough council with capacity for up to 70,000 m2 of distribution space, subject to obtaining planning consent.
On Monday LondonMetric sold the Bishop Auckland shopping park in north-east England to Standard Life Investments for £23.6 mln (€30 mln) at a net initial yield of 5.27%.
CEO Andrew Jones said: ‘Following the recent sale of our Bishop Auckland development, the Bedford acquisition replenishes our development pipeline and provides us with the opportunity to create a high quality scheme opposite our existing Argos distribution centre.’
LondonMetric’s half-year results for the six months to September showed a reported profit of €87.9 mln, a 58% increase on the previous year.
Chairman Patrick Vaughan said: ‘The last six months have continued to benefit from significant equity flows into the UK real estate sector as liquidity has continued to return to nearly every part of the market.’
