DISPOSAL OF TWO RETAIL AND LEISURE ASSETS FOR £19M

RNS Number : 5288X

LondonMetric Property PLC

27 November 2017

 

27 November 2017

LONDONMETRIC PROPERTY PLC

LONDONMETRIC SELLS TWO RETAIL

AND LEISURE ASSETS FOR £19 MILLION

LondonMetric Property Plc ("LondonMetric") announces that it has exchanged on the sale of an Odeon Cinema in Derby and a retail asset in Guisborough for £18.6 million reflecting a blended net initial yield of 4.8%.

At Derby, the 10 screen, 37,000 sq ft cinema formed part of a portfolio of ten Odeon Cinemas acquired in 2013 at an overall yield of 7.3%.  LondonMetric continues to own five Odeon cinemas with a WAULT of 21 years and rents that rise annually in line with RPI between 1% -  5%.

At Guisborough, the 26,000 sq ft scheme is let to Aldi and Iceland for a further 12 years and was acquired in 2014 at a NIY of 5.8%.

The sales reflect a 15% premium to the March 2017 valuation and materially above the latest valuation.

Andrew Jones, Chief Executive of LondonMetric, commented:

"These assets have generated strong returns from both income and significant yield compression, as investors increasingly look for reliable and predictable income streams.  

"The uplift in valuation over book value demonstrates the strength of the current market for long income with guaranteed growth in liquid lot sizes. Furthermore, it provides strong support for our portfolio valuations."

-Ends-

For further information, please contact:

LondonMetric Property Plc

Andrew Jones / Martin McGann

Tel: [phone]

FTI Consulting

Dido Laurimore / Tom Gough/ Richard Gotla

Tel: [phone]

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 13 million sq ft under management. Further information is available at www.londonmetric.com

 

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