LondonMetric sells in Loughborough

Published:  24 May, 2017

LondonMetric sells retail asset in Loughborough for £32.5m

LondonMetric Property has sold its Morrisons food store in Loughborough for £32.5m, reflecting a net initial yield of 4.25 per cent.

LondonMetric acquired the asset for £16.8m in 2010 at a NIY of 5.72 per cent and recently completed a comprehensive refurbishment and 12,000-sq ft extension at a cost of £7.9m. Morrisons subsequently entered into a new 25-year lease in January 2017 on the extended 55,000-sq ft store at an annual rent of £1.5m pa with contractual RPI uplifts.

The sale to a UK Pension Fund will complete in March 2018 at a price 11 per cent above last reported book value and crystallises a profit on cost of 26 per cent.

Chief Executive Andrew Jones said: “The lease regear and extension at Loughborough demonstrates our ability to partner with retailers to create value through our asset management and development capabilities.

“This is a very good asset that has generated attractive income and capital returns and the pricing reflects the strong institutional demand for long let income with guaranteed income growth.”

LondonMetric was advised by Wilkinson Williams. Allsop advised the purchaser.

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