UK REIT LondonMetric Property has sold three retail parks in the UK on behalf of its partnership with the Universities Superannuation Scheme (USS).
The retail parks in Bridgwater, Chatham and Grimsby were sold in three transactions for a total of £15.9 mln (€20 mln), reflecting a blended net initial yield (NIY) of 5.7%.
The assets were held by Metric Income Plus Limited Partnership (MIPP), LondonMetric's joint venture with UK pension investor USS. LondonMetric's said its share of the disposal volume was £8 mln.
The 3,000 m2 Range store in Bridgwater was sold to an international investor for £4.9 mln, reflecting a NIY of 5.1% rising to 5.7% in 2018. The newly developed store was acquired for MIPP in 2013 at a NIY of 6.8% and has an unexpired lease term of 17 years.
The 2,400 m2 Wickes store in Chatham was sold to clients of Knight Frank Investment Management (KFIM) for £6.9 mln, reflecting a NIY of 5.64%. The store was acquired in 2013 at a NIY of 7%.
An international investor acquired the 1,950 m2 Wickes store in Grimsby for £4.1 million, reflecting a NIY of 6.4%. The newly developed store was acquired in 2015 on a forward commitment basis at a NIY of 7.2%.
Andrew Jones, Chief Executive of LondonMetric, commented: 'Since acquisition, these assets have generated strong income return and material yield compression. There is healthy buying interest across our retail portfolio and we will continue to sell mature assets, recycling into opportunities that offer better income and income growth prospects.'
MIPP was advised by Knight Frank on Chatham. KFIM was advised by ESH.
