1st Oct 2014 07:32
LONDON (Alliance News) - Real estate businesses Londonmetric Property PLC and Mckay Securities PLC Wednesday said they have added to their respective portfolios.
Londonmetric said it has acquired a Dixons Retail distribution centre in Newark, Nottinghamshire for GBP68.5 million, reflecting a net initial yield of 6.4%. The acquisition is from a private investor and will be funded from the company's existing resources.
Londonmetric said the 726,200 square feet asset was purpose built for what is now Dixons Carphone PLC in 2006 and is let at a rent of GBP4.5 million a year.
Meanwhile, real estate investment trust McKay Securities said it has acquired the freehold to The Planets, a property let to Woking Borough Council, for GBP8.8 million.
McKay acquired the site, which is let to the council until March 2020, from St Modwen Properties PLC.
The Planets produces GBP638,828 a year in rent, equivalent to GBP6.95 per square foot. This provides an initial yield of 6.9%, increasing at the next rent review in March 2015 to an estimated GBP750,000 a year.
The Planets was built as a supermarket in the 1970's and occupies a site in the centre of Woking totalling 1.04 acres. It was converted in the mid 1990's and is now occupied as a mixed use scheme comprising conference centre, bingo hall, hotel and other leisure facilities, totalling some 92,000 square feet.
Londonmetric shares were quoted up 0.4% at 139.60 pence Wednesday morning, while McKay Securities shares were up 0.1% at 237.81 pence
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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