LondonMetric sells two M&S stores, buys Durham development

LondonMetric Property has sold two M&S convenience stores for £10.7m, reflecting a net initial yield of 4.5%, and purchased a convenience development in Durham pre-let to Lidl for £13.3m, reflecting a yield on cost of 5.4%.

The two M&S stores that have been sold were purchased in 2015 for £7.7m at a blended yield on cost of 5.9%.

Meanwhile, the 58,000 sq ft convenience development in Durham has been bought via a forward funding contract with Kier Property. It is pre-let to Lidl and The Range for 20 years, at £13 per square foot, and will generate £0.8m of income a year.

LondonMetric said it will benefit from a 5.5% funding coupon during construction, which is expected to complete in the first half of next year.

Chief executive Andrew Jones said: "The market for long, secure and growing income remains highly competitive, and the convenience sector continues to be well supported by shifting consumer shopping patterns."

At 0855 BST, the shares were up 0.1% to 185.20p.