LondonMetric Property PLC £18 MILLION ACQUISITION OF TWO WAREHOUSES (7620P)
November 22 2016 - 1:01AM
UK Regulatory
TIDMLMP
RNS Number : 7620P
LondonMetric Property PLC
22 November 2016
22 November 2016
LONDONMETRIC PROPERTY PLC
GBP18 MILLION ACQUISITION OF TWO WAREHOUSES
LET TO WICKES AND B&Q
LondonMetric Property Plc ("LondonMetric") announces that the
Metric Income Plus Limited Partnership ("MIPP"), its joint venture
with Universities Superannuation Scheme Ltd ("USS"), has acquired a
B&Q warehouse in Hull and a Wickes warehouse in Dartford for a
total cost of GBP18.4 million (LondonMetric share: GBP9.2 million),
reflecting a blended NIY of 6.8%.
The 71,000 sq ft B&Q store in Hull has been bought from
Stobart Group and Roebuck Asset Management for GBP9.4 million,
reflecting a NIY of 7.5%. The unit is let at GBP0.75 million p.a.
with an unexpired lease term of 12 years.
The 40,000 sq ft Wickes retail warehouse in Dartford has been
bought from a private investor. Simultaneous with the purchase,
MIPP has granted a new 20 year lease to Wickes at a rent of GBP0.6
million p.a. The total cost of GBP9.0 million reflects a NIY of
6.2%.
MIPP was advised by Knight Frank on both deals and also by
Beaton Associates on Dartford. Edgerley Simpson Howe represented
Stobart and Roebuck.
Andrew Jones, Chief Executive of LondonMetric, commented:
"These are two strong income producing assets, let off an
average lease term of over 15 years, generating an income return on
equity in excess of 10%.
"Both assets trade well and these transactions demonstrate our
strong occupier relationships to source attractive off-market
opportunities, in both the retail and logistics sector."
Graham Burnett, Head of Property at USS, said:
"These are attractive acquisitions by LondonMetric on behalf of
MIPP which continues to be a successful joint venture for the
scheme and its members."
-Ends-
For further information, please contact:
LondonMetric Property Plc
Andrew Jones / Martin McGann
Tel: +44 (0) 20 7484 9000
FTI Consulting
Dido Laurimore / Tom Gough / Richard Gotla
Tel: +44 (0)20 3727 1000
USS
Chris White at Redwood Consulting
Tel: +44 (0) 20 7828 5553
About LondonMetric Property Plc
LondonMetric is a FTSE 250 property company (ticker: LMP) that
aims to deliver attractive returns for shareholders through a
strategy of increasing income and improving capital values. It
invests across the UK in retail led distribution, out of town and
convenience retail properties with a total of 12 million sq ft
under management, the majority of which is in distribution. It
employs an occupier-led approach with a focus on strong and growing
income, asset management initiatives and short cycle development.
LondonMetric works closely with retailers, logistics providers and
leisure operators to help meet their evolving real estate
requirements.
Further information on LondonMetric is available at
www.londonmetric.com
About Universities Superannuation Scheme
Universities Superannuation Scheme was established in 1975 as
the principal defined benefit pension scheme for universities and
other higher education institutions in the UK. It has circa 375,000
scheme members across more than 360 institutions and is the largest
private sector pension scheme in the UK, with total fund assets of
approximately GBP56 billion (as at 30 September 2016) and property
assets totalling approximately GBP3.1 billion.
The scheme's trustee is Universities Superannuation Scheme Ltd,
a corporate trustee which provides scheme management and
trusteeship from its offices based in Liverpool and London. The
trustee company delegates implementation of its investment strategy
to a wholly-owned investment management subsidiary company - USS
Investment Management Limited - which provides in-house investment
management and advisory services.
For more information on Universities Superannuation Scheme
please go to www.uss.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
END
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