LondonMetric targets convenience retail

Published:  26 April, 2016

LondonMetric buys £16m of assets at 7.0 per cent

LondonMetric Property has bought two convenience assets in Matlock and Leicester and a development site in Ipswich for a total cost of £16.2m, reflecting a net initial yield of 7.0 per cent.

In Ipswich, LondonMetric has acquired a three-acre site from Tesco, where it intends to develop a new 30,000-sq ft retail park; 20,000 sq ft has been pre-let to Wickes. The development is expected to complete in summer 2017 at a total cost of £8.0m, reflecting an anticipated yield of 7.7 per cent.

In Matlock, LondonMetric has acquired a 22,000-sq ft store and pre-let 13,000 sq ft to M&S, reflecting a yield of 7.0 per cent. Terms are agreed on the remaining space.

In Leicester, LondonMetric has agreed to buy an 18,000-sq ft development pre-let to Aldi, reflecting a yield of 5.8 per cent. Practical completion is expected in August 2016.

The weighted average unexpired lease term of the three lettings is 18.4 years.

Chief Executive Andrew Jones said: “As consumer shopping patterns evolve, we continue to source new opportunities that offer modern trading formats, let off affordable rents and on very long leases, delivering value to both our customers and shareholders.”

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