London property investor announces £11m disposal of two retail store sites

A London property investment company has announced that it has agreed on the disposals of two retail store buildings in deals totalling more than £11m.

LondonMetric Property reported today that it has sold two assets in Derby, housing a Marks & Spencers store and a Wickes store.

The 15,000 sq ft M&S Foodhall, which is let for 15 years, was sold by a forward commitment to an overseas investor for £6.2m, with completion of the sale expected at the end of this year.

The second property, a 34,000 sq ft Wickes store which is let for 11 years, was also sold internationally to an overseas property company in a deal worth £4.9m expected to complete in August.

The properties were sold at a blended net initial yield of 6 per cent and a 7 per cent surplus to the last reported book value.

Andrew Jones, Chief Executive of LondonMetric, commented: “These disposals reflect the growing demand for good quality long income real estate, for which we continue to receive attractive approaches.

“We constantly look to re-balance our portfolio and will recycle the sale proceeds into opportunities in strong geographies that provide certainty of income and income growth.”