14th Apr 2016 06:42
LONDON (Alliance News) - LondonMetric Property PLC said Thursday it has sold the Odeon Multiplex Cinema in Taunton, Somerset, for GBP9.1 million to the Asda Pension Fund.
LondonMetric said the sale reflects a net initial yield of 5.5%.
The property, which is an eight screen, 27,000 square feet cinema, is to form part of a portfolio managed by property management company OLIM Property Ltd, LondonMetric said.
The cinema is currently let to Odeon Cinemas Ltd for a remaining term of 22 years, and the rent rises annually in line with the retail price index between 1.0% and 5.0%, the company added.
The property formed part of a portfolio of ten Odeon Multiplex Cinemas purchased by LondonMetric in November 2013 at an overall net initial yield of 7.2%.
LondonMetric continues to own six Odeon cinemas and one VUE Entertainment cinema with an average lease length of 22 years.
"Since acquisition, this asset has generated a strong income return and benefited from yield compression as demand increasingly focusses on long and predictable income," said Chief Executive Andrew Jones.
"It has been an excellent investment providing inflation linked income growth let to a strong covenant in a market that continues to strengthen on the back of an impressive film slate," Jones added.
By Hannah Boland; [email protected]; @Hannaheboland
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