LondonMetric venture sells off three retail properties

LondonMetric’s joint venture with Universities Superannuation Scheme, Metric Income Plus Limited Partnership, announced the sale of its retail parkers in Bridgwater, Chatham and Grimsby for £15.9m, of which LondonMetric’s share is £8m, reflecting a blended net initial yield of 5.7%.

The FTSE 250 firm said the 33,000 square feet Range store in Bridgwater has been sold to an international investor for £4.9m, reflecting a net initial yield of 5.1% and rising to 5.8% in 2018.

It acquired the then-new store in 2013 at a net initial yield of 6.8%, and it carries an unexpired lease term of 17 years.

In Chatham, the 26,000 square feet Wickes store was sold to clients of Knight Frank Investment Management for £6.9m, reflecting a net initial yield of 5.64%. It was acquired in 2013 at a net initial yield of 7%.

The Wickes store in Grimsby, totalling 21,000 square feet, was sold to an international investor for £4.1m, reflecting a net initial yield of 6.4%. The site was developed in 2015, and acquired by Metric Income Plus at the time on a forward commitment basis at a net initial yield of 7.2%.

"Since acquisition, these assets have generated strong income return and material yield compression,” said LondonMetric chief executive Andrew Jones.

“There is healthy buying interest across our retail portfolio and we will continue to sell mature assets, recycling into opportunities that offer better income and income growth prospects."