18th Sep 2013 08:57
LONDON (Alliance News) - Real-estate investment trust LondonMetric Property PLC said Wednesday that its joint venture Metric Income Plus Limited Partnership (MIPP) had exchanged contracts to acquire five Wickes retail warehouse units for GBP28.0 million.
The standalone units, which are being acquired from clients of Aberdeen Asset Management, have an average unexpired lease term of just over ten years and would give an average net yield of 7.25%, LondonMetric said in a statement.
The company also said that it was already in detailed discussions with Wickes, a DIY retailer, about extending the unexpired lease terms and developing the sites. Wickes is a wholly-owned subsidiary of Travis Perkins PLC.
The five units covered by the deal - in Oxford, Chatham, Maldon, Oldham and Barnsley - range in size from 24,900 to 28,200 square feet.
The deal was being financed by the GBP75 million loan facility which MIPP - a joint venture with the Universities Superannuation Scheme - holds, LondonMetric said. It would earn an average cash-on-cash return of around 10% per annum, the company said.
"This off-market acquisition underlines the strength of our retail relationships both in the investment and occupational market," said LondonMetric Chief Executive Andrew Jones. "We are already in detailed discussions with Wickes to materially extend the unexpired lease terms and progress various development initiatives, in partnership with them."
Established in November 2011, MIPP has invested GBP126 million in a total of 16 schemes.
LondonMetric were advised on the deal by Harvey Spack Field. The GBP28 million total excludes acquisition costs.
Shares in LondonMetric were trading at 116.00 pence Wednesday morning, up 1.00p.
By Philip Nye; [email protected]
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