6th Feb 2014 08:57
LONDON (Alliance News) - Real estate investment trust Londonmetric Property PLC Thursday reported an "intense level of investment activity" between October 1, 2013 and February 5, 2014, as it acquired properties worth GBP201.9 million at an average yield of 7.9% and made commercial disposals of GBP129.7 million at an average yield of 6.1%.
In an a interim management statement for the third quarter, the firm said its acquisitions included a Royal Mail PLC distribution centre in Daventry for GBP36.0 million and Superdrug's distribution centre in Doncaster for GBP13.0 million. The firm also acquired the Travis Perkins PLC distribution centre in Brackmills for GBP9.0 million.
The distribution portfolio now comprises 11 assets let to tenants including Argos, Boden, Co-op, Primark, Royal Mail, Tesco PLC, Travis Perkins, Superdrug and WH Smith PLC with a combined portfolio value of GBP261.8 million, representing 25% of the enlarged LondonMetric portfolio.
"We aim to materially increase our exposure to this sub-sector to match our retail exposure and are confident in our ability to source attractive investments despite an increasingly competitive investment market," the firm said.
The rest of the company's acquisitions were made up of "out of town" purchases totalling GBP143.9 million, including ten Odeon multiplex cinemas for GBP80.6 million.
During the period, Londonmetric also sold Unilever PLC's headquarters in Leatherhead for GBP75.8 million, representing an exit yield of 5.9%, and five retail assets for a combined GBP46.2 million, including Congleton Retail Park, Manchester for GBP16.4 million.
Overall, Londonmetric said its investment portfolio is worth GBP842 million and 99.4% let with only 4.6% of income due to expire over the next five years.
The investment portfolio?s contracted rent roll is now GBP61.7 million per annum with 34% of income subject to fixed or Retail Price Index rental uplifts.
At One Carter Lane near St Paul's tube station Londonmetric exchanged contracts to let a further floor to investment management business MFS bringing total pre-letting to 72% of targeted income.
The average rental achieved across all office pre-lets is GBP56.00 per square foot on average lease lengths of 18 years. There is a further 32,000 square feet of office accommodation to let over the ground and first floors, and the firm is in active discussions with a number of parties.
"We expect to have the building fully let by the time we reach practical completion in early April," Londonmetric said.
Financially, the firm said its completed a new GBP43.5 million, four year debt facility with Lloyds Bank Group PLC for the Odeon Cinema portfolio.
Londonmetric also extended its Helaba finance facility by a further GBP31 million to help finance the Travis Perkins acquisition. The Helaba facility now stands at GBP121.5 million with further capacity to provide debt against the Royal Mail acquisition. The facility has a further four and a half years to run.
Londonmetric shares were up 0.2% at 139.20 pence early Thursday.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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