LondonMetric Property has announced that it has exchanged contracts to sell the Odeon Multiplex Cinema, in Preston, for £10.2m. The sale reflects a net initial yield of 5.75% and the buyer is the Blackrock UK Long Lease Property Fund. The 33,000 square foot property has ten screens and is let to Odeon Cinemas Ltd for a remaining term of 23 years. The lease is subject to annual rental increases of between 1% and 5% linked to RPI. The property formed part of a portfolio of ten Odeon Multiplex Cinemas acquired by LondonMetric in November 2013 at an overall net initial yield of 7.2%. LondonMetric continues to own seven Odeon cinemas and one Vue cinema with an average lease length of 22 years.
The purchaser’s portfolio manager commented that the acquisition was the latest in a series to obtain long-dated cash flows to match the liabilities of their clients. LondonMetric say that the sale attracted good institutional interest, particularly as the cinema market has continued to strengthen on the back of an impressive film slate.
LondonMetric sells the Odeon Multiplex Cinema in Preston for £10.2m : LMP