LondonMetric Property has acquired £21.9m of convenience service stations across three separate transactions reflecting a blended net initial yield of 5.1%.
The seven assets have a weight average unexpired lease term (WAULT) of 18 years and all benefit from contractual rental uplifts.
The transactions comprise four Co-op convenience service stations in Basingstoke, Dagenham and South Wales acquired for £12.5m; two London convenience service stations in Stamford Hill and Plumstead acquired for £5.4m through a sale and leaseback arrangement with TG Convenience Stores; and a new Shell and Budgens service station in Worcester acquired for £4.0m.
[QD comment: LondonMetric has built a reputation for being one of the canniest property companies around after reconfiguring its portfolio away from retail and into industrial and logistics from the early part of the 2010s. These acquisitions feel like it is backing another property structural move early, with electric car charging facilities almost certainly going to be in demand in the not too distant future.]
Separately, the company has sold £4.2m worth of Kwik Fit service stations and IMO car washes at a net initial yield of 4.7%. These assets were originally acquired through larger portfolio transactions.
LMP : LondonMetric acquires service station portfolio for £22m