LondonMetric swaps unwanted LXi retail assets for urban warehouses

LondonMetric Property has sold seven properties in separate transactions for £31.3m, reflecting a blended NIY of 7.0% and a 3% profit over prevailing book values. They include £18.3m of non-core LXi REIT assets, which have been sold at 5% ahead of prevailing book values.

The sales comprise:

• A 106,000 sq ft Asda foodstore in Scotland (former LXi asset) sold for £10.5m;
• A 41,000 sq ft retail park in Ipswich let to Wickes, Topps Tiles, McDonalds and Costa sold for £10.2m;
• Two former Cazoo car showrooms in Edinburgh and Cardiff (former LXi assets) sold for £6.4m;
• A B&M retail store in Stourbridge (former Mucklow asset) sold for £2.8m; and
• A Travelodge hotel and a pub (former LXi assets) sold for £1.4m.

Separately, LondonMetric has acquired six reversionary urban warehouse assets for £45.0mn, reflecting a NIY of 6.1% and a reversionary yield of 6.6%.

The assets acquired have a WAULT of 7.6 years and comprise:

• A 106,000 sq ft warehouse in Cardiff let to Booker;
• A 95,000 sq ft warehouse in Milton Keynes let to Ingram Content Group;
• A 30,000 sq ft multi-let warehouse in York;
• A 28,000 sq ft multi-let warehouse in Reading; and
• Two warehouses totalling 37,000 sq ft in Derby and Huntingdon, acquired through a 15-year sale and leaseback with Travis Perkins.

LMP : LondonMetric swaps unwanted LXi retail assets for urban warehouses