Partner Article

LondonMetric acquires six retail parks

Property company LondonMetric has made an eight-figure acquisition for a portfolio of six retail parks from clients of Aviva Investors.

Thursday’s deal will be the business’s first acquisition after it was recently formed through a merger between London & Stamford Property and Metric Property Investments.

A total consideration of £92.4m has been put forward for the six properties, which come to a total of 400,000 sq ft, spread out across Christchurch, Leicester, Luton, Milton Keynes, Southampton and Tonbridge.

LondonMetric expects to bring in approximately £7.5m a year from the properties, which are currently let at 98% occupancy with around 60% of the buyer’s expected income to come from B&Q, Dixons, Next, DFS, Halford, Wickes and Pets at Home.

The deal is anticipated to be completed by mid-February, and will bring LondonMetric’s total retail assets to a combined value of £335m.

Andrew Jones, chief executive, commented: “This acquisition typifies the opportunities that we are seeking to acquire; as it offers secure, well let income with additional asset management opportunities and the ability to add value all in an area of the market where we have particular expertise.

“The attractive income yield, combined with our existing debt facilities, will deliver initial cash-on-cash returns of over 12% and will continue to grow as the fixed rental uplifts fall due.”

This was posted in Bdaily's Members' News section by Miranda Dobson .