£122 MILLION ACQUISITION
22 December 2021
LONDONMETRIC ACQUIRES SAVILLS IM INCOME & GROWTH FUND
FOR £122 million
LondonMetric Property Plc ("LondonMetric") has acquired Savills IM UK Income and Growth Fund ("Fund") in a corporate transaction valued at £122.2 million, reflecting a blended yield on cost of 4.3% and an anticipated reversionary yield of 4.9%.
The Fund owns a portfolio of 15 assets across 482,000 sq ft with 75% in urban logistics and the remainder comprising long income assets. 74% of the assets are located in London and South East with key locations including Croydon, Farnborough, Hounslow, Greenwich, Guildford, Maidstone and Stevenage. A further 12% of the portfolio is located in the Midlands.
The portfolio has a WAULT of 11.0 years (9.2 years to first break) and key occupiers include Decora, Fujitsu, Grafton, HSBC, Iveco, MKM and Volkswagen. It generates £5.35 million of rent per annum with 43% of the income benefitting from contractual uplifts. The assets are under rented and offer attractive reversionary potential and further asset management opportunities.
Andrew Jones, Chief Executive of LondonMetric, commented:
"Following our equity placing last month, we are pleased to have quickly invested a substantial proportion of the proceeds into this high quality portfolio. Reflecting their London & South East weighting, we expect these assets will continue to perform strongly as high occupier demand and diminishing warehouse supply drive rental growth higher."
Jamie Pearson, Savills Investment Management, commented:
"This portfolio has been carefully constructed on behalf of our investors. Our early move to create a portfolio dominated by high quality London & South East Industrial assets has consistently delivered benchmark beating returns and ultimately a favourable exit for our investors."
LondonMetric was advised by Springer Nicolas and Knight Frank.
The Fund was advised by Savills Capital Advisors.
For further information, please contact:
LondonMetric Property Plc
Andrew Jones / Martin McGann / Gareth Price
Tel: +44 (0) 20 7484 9000
Savills Investment Management
Jamie Pearson
Tel: +44(0) 20 7499 8644
Alex Hogan
Tel: + 44 (0) 7730679996
E: savillsim@citigatedewerogerson.com
FTI Consulting, PR to LondonMetric
Dido Laurimore / Richard Gotla / Andrew Davis
Tel: +44 (0)20 3727 1000
About LondonMetric Property Plc
LondonMetric is a FTSE 250 REIT that owns one of the UK's leading listed logistics platforms alongside a grocery-led long income portfolio, with 16 million sq ft under management. It owns and manages desirable real estate that meets occupiers' demands, delivers reliable, repetitive and growing income-led returns and outperforms over the long term.
Further information is available at www.londonmetric.com
About Savills Investment Management
· Savills Investment Management is an international real estate investment manager with offices in Amsterdam, Frankfurt, Hamburg, Katowice, Kuala Lumpur (as part of a cooperation agreement with Savills Malaysia), London, Luxembourg, Madrid, Milan, Munich, Paris, Singapore, Stockholm, St. Helier, Sydney, Tokyo and Warsaw.
· As of 30 June 2021, Savills Investment Management managed total assets of EUR 24.3 billion.
· Savills Investment Management is the brand name used to represent Savills Investment Management LLP and its subsidiaries.
· Savills Investment Management LLP is a limited liability partnership registered in England No: OC306423 authorised and regulated by the Financial Conduct Authority.
· Savills Investment Management is regulated in the UK, Australia, Italy, Germany, Jersey, Japan, Luxembourg and Singapore.
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