CONVENIENCE DEVELOPMENT ACQUISITION AND M&S SALES
2 July 2018
LONDONMETRIC PROPERTY PLC
LONDONMETRIC SELLS TWO M&S CONVENIENCE ASSETS
AND PURCHASES A CONVENIENCE DEVELOPMENT ANCHORED BY LIDL
LondonMetric Property Plc ("LondonMetric") announces that it has sold two M&S convenience stores for £10.7 million, reflecting a NIY of 4.5%, and purchased a convenience development in Durham pre-let to Lidl for £13.3 million, reflecting a yield on cost of 5.4%.
The two M&S stores that have been sold were purchased by LondonMetric in 2015 for £7.7 million at a blended yield on cost of 5.9%. They have delivered an ungeared IRR of 17% per annum.
The 58,000 sq ft convenience development in Durham has been acquired via a forward funding contract with Kier Property. It is pre-let to Lidl and The Range for 20 years, at £13 psf, and will generate £0.8 million of income per annum, 40% of which is RPI linked.
LondonMetric will benefit from a 5.5% funding coupon during construction, which is expected to commence shortly and complete in the first half of 2019.
Andrew Jones, Chief Executive of LondonMetric, commented:
"The market for long, secure and growing income remains highly competitive, and the convenience sector continues to be well supported by shifting consumer shopping patterns."
LondonMetric was advised by BNP on Durham. Kier Property was advised by Savills.
-Ends-
For further information, please contact:
LondonMetric Property Plc
Andrew Jones / Martin McGann
Tel: +44 (0) 20 7484 9000
FTI Consulting
Dido Laurimore / Tom Gough / Richard Gotla
Tel: +44 (0) 20 3727 1000
About LondonMetric Property Plc
LondonMetric is a FTSE 250 REIT (ticker: LMP) that specialises in distribution, convenience and long income property. It focuses on strong and growing income and adding value through asset management initiatives and short cycle developments. LondonMetric has 14 million sq ft under management. Further information is available at www.londonmetric.com
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