26th Mar 2014 10:51
LONDON (Alliance News) - Londonmetric Property PLC Wednesday said its joint venture has completed its acquisition of 27 DFS assets from the administrator of Delphi Properties Limited in a GBP175 million deal.
LondonMetric owns a 30.5% interest in the joint-venture, LMP Retail Warehouse JV Property Unit Trust, with Luxembourg-based LVS II Lux X Sarl. The trust has acquired the DFS assets for a purchase price of GBP175 million, reflecting a net yield of 9.3%.
DFS is a British sofa retailer which also offers soft furnishings.
The deal was simultaneous with the disposal of the 10 of the portfolio assets in three separate transactions for a total consideration of GBP47.1 million, a net yield of 8.6%. The firm did not name the buyers in the three deals.
The remaining portfolio of 17 assets with an acquisition price of GBP136.4 million consists of 15 retail warehouses, one industrial unit and DFS' headquarters and distribution centre, covering a total area of 572,000 square feet.
The associated rent roll is GBP13.0 million a year with a running yield of 9.0%.
LondonMetric is responsible for the management of the portfolio and receives a fee equivalent to 4.0% of rents received.
"The disposals reflect the increasing institutional appetite for long income assets let to the best occupiers," said Andrew Jones, Chief Executive of LondonMetric.
The stock was trading at 144.65 pence Wednesday morning, up 0.65 pence or 0.5%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
LondonMetric