LondonMetric acquires £16m of assets

LondonMetric Property has acquired two convenience assets in Matlock and Leicester and a development site in Ipswich for £16.2m, reflecting a net initial yield of 7.0%.

The company has bought a three acre site from Tesco in Ipswich, where it plans to develop a new 30,000 sq ft retail park, with 20,000 sq ft pre-let to Wickes. The development is expected to complete in summer 2017 at a cost of £8m.

Meanwhile, the Matlock acquisition comprises a 22,000 sq ft store and pre-let 13,000 sq ft to Marks & Spencer, reflecting a yield of 7.0%.

In Leicester, LondonMetric has agreed to buy an 18,000 sq ft development pre-let to Aldi, reflecting a yield of 5.8%, with practical completion expected in August.

The weighted average unexpired lease term of the three lettings is 18.4 years.

Chief executive Andrew Jones said: ‎"As consumer shopping patterns evolve, we continue to source new opportunities that offer modern trading formats, let off affordable rents and on very long leases, delivering value to both our customers and shareholders."

At 0811 BST, LondonMetric shares were up 0.1% to 160p.