28th Nov 2013 08:33
LONDON (Alliance News) - LondonMetric Property PLC saw its share rise Thursday after it said it had sold three properties in two separate transactions, generating significant returns in the time it has owned the properties.
The property company sold the Nottingham Road Retail Park in Mansfield and St Mary's Road in Sheffield to Henderson Global Investors for GBP19.2 million, reflecting a net initial yield of 6.77% and generating a blended ungeared total return of 14.0% a year.
It had bought the Mansfield property in 2010 for GBP7.25 million, and has sold it for GBP11.5 million. It bought the Sheffield Property for GBP2.4 million in 2011 and has sold it for GBP7.7 million
Separately, the company's joint venture with the Universities Superannuation Scheme has completed on the sale of a Wickes unit in Oxford for GBP12.4 million to Lothbury Investment Management, reflecting a net initial yield of 5.3%. Its share of the sale price is GBP4.1 million.
"These disposals clearly endorse the validity of our business model by demonstrating the potential value that can be created through institutionalising good quality secondary stock and demonstrates the depth of demand amongst institutional investors for well let real estate assets," Chief Executive Andrew Jones said in a statement.
"The disposals allow us to crystallise attractive profits on cost and recycle our equity following completion of the asset management initiatives," he added.
LondonMetric shares were up 1.9% at 135 pence early Thursday, one of the biggest gains on the FTSE 250.
By Steve McGrath; [email protected]; @SteveMcGrath1
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