26th Apr 2016 07:09
LONDON (Alliance News) - LondonMetric Property PLC said Tuesday it has acquired two convenience assets in Matlock and Leicester as well as a development site in Ipswich for a total cost of GBP16.2 million.
The FTSE 250-listed property investor said the purchases reflect a net initial yield of 7.0%.
LondonMetric said, in Matlock, it has purchased a 22,000 square feet store with 13,000 square feet pre-let to retailer Marks & Spencer Group PLC, reflecting a yield of 7.0%. Terms are agreed on the remaining space, the company said.
In Leicester, LondonMetric said it has agreed to buy a 18,00 square feet development which is pre-let to German discount food retailer Aldi, reflecting a yield of 5.8%. Practical completion on the site is expected in August 2016.
LondonMetric said it has also purchased a three acre site from grocer Tesco PLC in Ipswich, which it intends to develop into a 30,000 square feet retail park. Of this, 20,000 square feet has been pre-let to Wickes, the home improvement retailer owned by Travis Perkins PLC. The development is expected to complete in summer 2017 at a total cost of GBP8.0 million, reflecting an anticipated yield of 7.7%.
The weighted average unexpired lease term of the three lettings is 18.4 years, LondonMetric added.
"As consumer shopping patterns evolve, we continue to source new opportunities that offer modern trading formats, let off affordable rents and on very long leases, delivering value to both our customers and shareholders," Chief Executive Andrew Jones said.
Shares in LondonMetric were flat at 159.90 pence on Tuesday morning.
By Hannah Boland; [email protected]; @Hannaheboland
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