16th Feb 2022 09:33
(Alliance News) - LondonMetric Property PLC said on Wednesday it has struck several deals in the Midlands to reshuffle its property portfolio and enhance yields.
The FTSE-250 listed real estate investment trust completed a disposal of a car showroom in Solihull for GBP15.0 million, which reflects a net initial yield of 4.5% The 52,000 square feet asset generates GBP800,000 in annual rent, and was acquired as part of the Savils IM Fund acquisition in December 2021.
The completion of the sale has been delayed until the end of April, meaning LondonMetric will receive GBP200,000 additional rent.
LondonMetric has also acquired a 40,000 sq ft triple-net lease retail asset in Middleway Birmingham for GBP8.0 million, which reflects a net initial yield of 7.8%. It has been let to Dunelm Group PLC and Currys PLC with a weighted average lease term of two years, generating GBP700,000 in annual rent.
"We identified the Solihull property as a non-core asset at the time of purchase. We have taken advantage of the strong appetite for long let income to swiftly dispose of the property at a premium. The proceeds of the sale have been reinvested into a better-located property offering a significantly higher yield with material asset management potential," said Chief Executive Andrew Jones.
LondonMetric shares were trading 0.5% higher at 261.40 pence in London on Wednesday morning.
By Elizabeth Winter; [email protected]
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