18th Nov 2024 07:47
(Alliance News) - LondonMetric Property PLC on Monday said it acquired a retail park near Basildon and sold a number of non-core assets across the UK, as it looks to invest in higher-quality properties.
The London-based real estate investment trust sold 24 properties from non-core sectors for a total of GBP57.9 million, reflecting a 6% premium over prevailing book values.
The transaction included 22 assets which the company obtained from its merger with LXi REIT PLC in March.
A 73,000 square foot Asda food store in Halesowen sold for GBP28.0 million, a leisure asset in Hamilton sold for GBP9.0 million, five pubs sold for GBP8.2 million, and 12 assisted living assets sold for GBP6.7 million as the company exits from the sector.
Furthermore, LondonMetric disposed of three Travelodge hotels in Perth, Carlisle and Stonehouse for GBP4.0 million, alongside a small London development site and Boots retail unit in Bangor which sold for GBP2.0 million.
Also Monday, LondonMetric announced the acquisition of a retail park near Basildon for GBP10.0 million with a net initial yield of 6.7% rising to 7.3% following pending rent reviews. The site currently hosts a Pets at Home, Poundland, Farmfoods, McDonald's and KFC.
Chief Executive Andrew Jones said: "These are a series of excellent disposals reflecting our strategy of exiting assets and sectors that are incompatible with the listed REIT sector. We are redeploying the proceeds into winning sectors and higher quality assets that will provide better income reliability, predictability and trajectory."
With this latest round of disposals finished, the FTSE 100-listed firm has sold a total of 52 assets for GBP209 million since March 31, representing a NIY of 7.6%.
By Elijah Dale, Alliance News reporter
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