LondonMetric Property has made two acquisitions totalling £11.6m following its £120m equity raise last month.
The company has bought five roadside service centres in a sale-and-leaseback deal with Kwik Fit. The assets were bought for £9.6m and are located in Barnet, Whetstone, Hounslow, Hammersmith and Slough. LondonMetric said each had a strong underlying residual value supported by alternative use, principally residential.
The group has also purchased, via a forward funding contract, a new build roadside asset in Rushden for £2m let to Euro Garages. The property will consist of a convenience store, petrol station and drive through Starbucks and cover a two-acre site.
Together, the assets have a weighted average unexpired lease term (WAULT) of 17 years and all benefit from contractual rental uplifts. The purchase price reflects a blended net initial yield of 5.1%.
Separately, LondonMetric has completed the £13.3m disposal of a regional distribution warehouse in Rotherham at a net initial yield of 5.0%. The sale of the warehouse, let to the Royal Mail for a further eight years, was announced in December 2019 subject to delayed completion.
LMP : LondonMetric acquires £11.6m of assets