UK REIT LondonMetric Property has acquired a grocery-led property in South Ruislip, West London, for £18 mln (€21 mln).
The 41,000 ft2 (3,800 m2) building is let to Aldi and B&M and has a weighted average unexpired lease term (WAULT) of 9.4 years. It generates £0.9 mln per annum of rent (£21.40 per ft2), around 40% of which has RPI linked rent reviews.
Located on a 3.5 acre (14,000 m2) site adjacent to an Asda supermarket, the asset was substantially refurbished in 2015 and its sizeable car park provides further asset management potential, according to the buyer.
Separately, Metric Income Plus, LondonMetric’s joint venture with Universities Superannuation Scheme, has sold a portfolio of three DIY and homeware properties for £14.2 mln, of which LondonMetric's share is £7.1 mln to a US investor.
Located in Speke, Barnsley and Beverley, the properties are let to Wickes and Dunelm and have a WAULT of 10.2 years. The sale price reflects a 9% premium to the 31 March book value.
Andrew Jones, chief executive of LondonMetric, commented: 'The recent sale of our Aldi/M&S store in Liverpool and the sale of three further properties today demonstrates the continued demand for our long income assets.
'The proceeds of these sales have been reinvested into a very well let grocery-led asset in a strong London geography. The acquisition not only provides greater certainty of income growth but also further asset management opportunities.'
