# LondonMetric Property Sells a portfolio of long income assets for £41m

- Link: https://www.directorstalkinterviews.com/londonmetric-property-sells-a-portfolio-of-long-income-assets-for-41m/412967432
- Published: 2021-03-11T11:47:11+00:00
- Author: Giles

**LondonMetric Property Plc** (“LondonMetric”) announces that it has sold a portfolio
of long income assets to Realty Income, an S&P 500 US REIT, for £40.9 million, reflecting
a blended NIY of 5.9%.

The portfolio comprises six assets with a WAULT of 11 years:

·    A 106,000 sq ft retail asset in Leicester let to B&Q, Home Bargain and Smyths
Toys. The property generates a rent of £1.8 million pa and is let for a further 
10 years term certain following a recent regear of the 77,000 sq ft B&Q store;

·    A 32,000 sq ft Wickes store in Halesowen, which LondonMetric acquired as part
of the Mucklow acquisition, with a WAULT of 8 years;

·     A 15,000 sq ft Aldi store in Hull which has a WAULT of 9 years; and

·    Three KwikFit service stations which had been acquired through a larger portfolio
acquisition and have a WAULT of 14 years.

The assets have delivered an ungeared IRR of 8% pa and the sale crystallises a total
return on cost of 50% over an average hold period of six years. The disposal is 
at a 7% premium to the last reported book value.

> **Andrew Jones, Chief Executive of LondonMetric Property, commented:**
> “These are all very well let assets that have delivered strong performances and
> their disposal crystallises an attractive surplus to our original purchase prices.
> The transaction is in line with our strategy of allocating further capital into
> the logistics and convenience grocery sectors.”    

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