LondonMetric Property PLC URBAN LOGISTICS ACQUISITION AND ODEON CINEMA SALE (2350U)
July 11 2018 - 1:00AM
UK Regulatory
TIDMLMP
RNS Number : 2350U
LondonMetric Property PLC
11 July 2018
11 July 2018
LONDONMETRIC PROPERTY PLC
LONDONMETRIC SELLS AN ODEON CINEMA IN WARRINGTON FOR GBP14
MILLION
AND ACQUIRES AN URBAN LOGISTICS ASSET FOR GBP12 MILLION
LondonMetric Property Plc ("LondonMetric") announces that it has
exchanged on the sale of an Odeon Cinema in Warrington for GBP13.7
million, reflecting a NIY of 4.8%, and acquired an urban logistics
asset in Milton Keynes for GBP12.0 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 GBP3.20 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.
For further information, please contact:
LondonMetric Property Plc
Andrew Jones / Martin McGann
Tel: +44 (0) 20 7484 9000
FTI Consulting
Dido Laurimore / Tom Gough
Tel: +44 (0)20 3727 1000
About LondonMetric Property Plc
LondonMetric is a FTSE 250 REIT (ticker: LMP) that specialises
in distribution, convenience and long income property. It focuses
on strong and growing income and adding value through asset
management initiatives and short cycle developments. LondonMetric
has 14 million sq ft under management. Further information is
available at www.londonmetric.com
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END
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