LondonMetric Property has announced that it has exchanged contracts on the sale of its freehold Odeon Multiplex Cinema, in Taunton, Somerset, for £9.1m. The purcasher is the Asda Pension Fund and the sale price reflects a net initial yield of 5.5%. The eight screen, 27,000 sq ft cinema is let to Odeon Cinemas Ltd for a remaining term of 22 years. The rent rises annually in line with RPI between 1% and 5%. 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 six Odeon cinemas, and one VUE cinema, with an average lease length of 22 years. LondonMetric says that the Taunton Multiplex has generated a strong income return during their ownership and has benefitted from yield compression, “as demand has increasingly focussed on long and predictable income”.
LondonMetric Property sells Taunton Odeon Multiplex for £9.1m : LMP