LondonMetric sells £74m of non-core assets

LondonMetric Property has sold 10 non-core properties for a total of £74.2m and spent £50m on fresh acquisitions. The disposals reflect a combined net initial yield of 6.9%. The largest is a 138,000 sq ft retail park in Coventry, sold for £37.3m and let to 13 occupiers including Currys, Aldi, B&M and Dunelm. LondonMetric bought the asset in 2010 for £18m. The other sales are an 82,000 sq ft Compass training office in Yarnfield (sold for £17.4m); a 35,000 sq ft convenience retail park in Totton (£9.5m); two offices in Coventry (£3.3m); two Stonegate pubs in Preston and Southampton (£3.3m); a former Dobbies garden centre in Huddersfield (£3.1m); and two parcels of development land (£300,000). Separately, the company has bought seven properties for £50.1m, reflecting an NIY of 6.5%: four Travis Perkins trade warehouses for £16.4m through 15-year sale and leasebacks; a Premier Inn hotel in West Thurrock for £14.7m; a 54,000 sq ft convenience retail property in Andover for £12.2m ; and a new 22,000 sq ft M&S foodstore, prelet on a 15-year lease, to be developed at a cost of £6.8m. Chief executive Andrew Jones said: “We have again successfully disposed of non-core assets at prices in line with our valuations and reinvested into higher quality opportunities in strong conviction sectors, where rental growth prospects are more compelling.” Photo © LondonMetric Property