LondonMetric Property Plc has sold three retail parks in Christchurch, Bedford and Maidstone for GBP60.9 million (LondonMetric share: GBP52.6 million).
At Christchurch, the 104,000 sq ft retail park has been sold to clients of Orchard Street Investment Management for GBP34.5 million, reflecting a NIY of 5.65%. The property was purchased in 2013 for GBP27.1 million and since then new lettings have been signed with Costa, DFS, Home Bargains and Subway. The WAULT is 7.0 years.
At Bedford, the 66,000 sq ft Alban Retail Park has been sold to the Tritax Property Income Fund for GBP14.4 million, reflecting a NIY of 5.9%. The property was acquired in 2010 for GBP9.2 million and, following asset management initiatives with B&M, Dunelm and Gym Group, rental income has increased by over 30%. The WAULT is 8.3 years.
At Maidstone, a DFS property has been sold to clients of Helix Property Advisors for GBP12.0 million (LondonMetric share: GBP3.7 million) on behalf of the Company’s DFS joint venture, reflecting a NIY of 7.5%. The property was acquired in March 2014 as part of a portfolio of DFS stores off an overall NIY of 9.3%. The joint venture retains 12 stores.
The disposals are at September 2016 book value and crystallise an ungeared IRR of 12.5%.
Andrew Jones, Chief Executive of LondonMetric, commented: “These have been very successful investments and we will continue to sell our well let mature retail assets upon completion of their business plans. Our retail park investments have halved over the last two years and now represent 13% of our total portfolio. The sale proceeds will be invested into our logistics investment and development programmes where rental growth prospects look more attractive.”
LMP : LondonMetric sells three retail properties