20th Jun 2018 08:03
LONDON (Alliance News) - FTSE 250-listed real estate investor LondonMetric Property PLC said Wednesday it has paid GBP55.0 million for ACT Foundation's portfolio of ten single let properties.
Half of the properties are located in the south east of England and London, while 35% are in the Midlands.
The portfolio is comprised of a retail store, which is let to Wickes, and nine assets totalling 340,000 square feet. It is currently let to, among others, Jewson Ltd and Vodafone Group PLC.
The company said that the purchase price represents a blended day one net initial yield of 4.4% and a reversionary yield of 5.3%.
The portfolio's weighted average unexpired lease term is nine years but after anticipated regears this is expected to increase to 12 years. Per year the portfolio generates GBP2.6 million in income with average rent of GBP6.90 per square foot, "significantly below" the estimated rental value of GBP8.10 per square foot.
"The portfolio is fully income generating, offers good opportunities to capture strong income growth and increases our urban logistics portfolio to approximately £400 million," said LondonMetric Chief Executive Andrew Jones.
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