LondonMetric Property divests office and long income assets for €28m

UK REIT LondonMetric Property has sold four office assets and two long-income assets in separate transactions for £24.5 mln (€28 mln).

Four non-core assets from the recently acquired CT Property Trust portfolio have been sold for £15.3 mln (€17.6 mln). These properties include three regional offices and a car showroom in Newbury. The buildings have a weighted average unexpired lease term of six years.

This sale follows the sale of three high-street retail assets from the CTPT portfolio last month.

An office building in Worcester, acquired as part of the A&J Mucklow takeover in 2019 and with a lease that expires in seven years, has been sold for £3.2 mln (€3.7 mln).

LondonMetric has also divested a convenience food property in Leicester for £6.0 million (€6.9 mln), reflecting a net initial yield of 5.3%. The property was acquired in 2016 for £4.6 mln (€5.3 mln) and is leased to Aldi for a further 13 years, with a first break in eight years.

The six assets have been sold at a profit of 1% above book value and 10% above underwrite.

Andrew Jones, CEO of LondonMetric, commented: ‘Despite elevated debt costs, we are seeing good liquidity for smaller lot sizes across all sectors of the investment market. Since completion of the CTPT acquisition in August, we have now sold seven of the 33 assets acquired representing c.8% of the portfolio by value, at prices comfortably ahead of our underwrite values.’

Following the latest disposals, LondonMetric has now sold a total of £154 mln (€177 mln) worth of assets this financial year.


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