LondonMetric Property has acquired five Waitrose supermarkets and an urban logistics facility let to Ocado for a total of £72.9m.
It has purchased the supermarkets from Waitrose in a sale-and-leaseback deal for £62m. Waitrose has signed new 20-year leases linked to CPIH. They are located in Keynsham, Malmesbury, Paddock Wood, Towcester and Yateley and range in size from 27,000 sq ft up to 43,000 sq ft.
Each store also operates as online fulfilment centres for both Waitrose and John Lewis.
LondonMetric has also purchased a 32,000 sq ft urban logistics unit in Walthamstow for £10.9m let to Ocado. It is let for a further eight years and passing rent is 20-25% below market rent with an open market review in 2023 expected to capture significant rental reversion.
Together, these assets generate a total rent of £3.34m a year, reflecting a blended net initial yield of 4.3% and a reversionary yield of 5.0%.
Both transactions were identified by the company at the time of its £120m equity raise. LondonMetric has now invested £83m of the £120m raised and said it was progressing well on other acquisition opportunities.
LMP : LondonMetric splashes £73m with Waitrose store buy