# LondonMetric Property Plc sells odeon cinema for £14 million

- Link: https://www.directorstalkinterviews.com/londonmetric-property-plc-sells-odeon-cinema-14-million/412754382
- Published: 2018-07-11T07:58:21+01:00
- Author: Charlotte Edwards

**LondonMetric Property Plc** (LON:LMP) announced that it has exchanged on the sale
of an Odeon Cinema in Warrington for £13.7 million, reflecting a NIY of 4.8%, and
acquired an urban logistics asset in Milton Keynes for £12.0 million, reflecting
a deemed NIY of over 5.0%.

At Warrington, the 10 screen, 36,000 sq ft cinema formed part of the portfolio of
ten Odeon Cinemas acquired in 2013 at an overall yield of 7.3%. Completion of the
sale to an institutional pension fund will be delayed until December 2018 allowing
LondonMetric to implement a potential asset management initiative that would result
in an additional payment. The disposal is above current book value and is expected
to generate an ungeared IRR of c.20%.

At Milton Keynes, the 112,000 sq ft urban logistics warehouse is let to the Royal
Mail for a further 10 years. The well presented and modern warehouse is located 
adjacent to the M1 (J13/14) and was comprehensively refurbished in 2013. The property
is let at a low rent of £3.20 psf and there is an outstanding rent review from May
2018. This is expected to increase the rent by over 80%.

> **Andrew Jones, Chief Executive of LondonMetric, commented:**
> “Our Odeon cinemas continue to generate strong income and capital returns and 
> we have responded to investor demand for property than can deliver long, predictable
> and growing income.
> “We will continue to recycle sale proceeds into expanding our urban logistics 
> portfolio. The Royal Mail warehouse is an attractive addition offering a very 
> strong location, high occupier contentment and income certainty with significant
> reversionary potential.”

Knight Frank advised LondonMetric on Warrington. At Milton Keynes, LondonMetric 
was advised by JLL and the seller was advised by Kimmre and Savills.

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