# LondonMetric Property announces £11.6 million of long income acquisitions

- Link: https://www.directorstalkinterviews.com/londonmetric-property-announces-11-6-million-of-long-income-acquisitions/412828246
- Published: 2020-06-03T07:18:28+01:00
- Author: Amilia Stone

**LondonMetric Property Plc** (LON:LMP) today announced two long income acquisitions
for a total consideration of £11.6 million, reflecting a blended net initial yield
of 5.1%.

The first transaction comprises a sale and leaseback portfolio of five roadside 
service centres in London for £9.6 million. The assets are let to Kwik Fit and located
in Barnet, Whetstone, Hounslow, Hammersmith and Slough with each having strong underlying
residual value supported by alternative use, principally residential.

LondonMetric has also purchased, via a forward funding contract, a prominent new
build roadside asset in Rushden for £2.0 million let to Euro Garages. The property
will consist of a convenience store, petrol station and drive through Starbucks 
and cover a two-acre site, where nearby industrial and high density residential 
more than underpins the purchase price.

Together, these assets have a WAULT of 17 years and all benefit from contractual
rental uplifts.

Separately, LondonMetric has completed the £13.3 million disposal of a regional 
distribution warehouse in Rotherham at a net initial yield of 5.0%. The sale of 
the warehouse, let to the Royal Mail for a further eight years, was announced in
December 2019 subject to delayed completion.

> **Andrew Jones, Chief Executive of LondonMetric Property, commented:**
> “We continue to actively acquire long income properties in good locations that
> offer attractive triple net income and certainty of income growth.  These assets
> are let on very long leases to strong covenants with whom we have established 
> relationships and, following our recent equity fundraising, we are in legals on
> a number of other opportunities with similarly attractive characteristics.”

Cushman & Wakefield acted for Kwik Fit on the sale and leaseback portfolio.

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