LondonMetric divests seven assets for €99 million

LondonMetric Property has continued to streamline its portfolio, completing £105 million (€122 mln) of investment activity since July as the REIT accelerates its shift toward long‑income, granular triple net assets.

Andrew Jones, London Metric

The company has sold seven assets for £85 million (€99mln), in line with March valuations and reflecting a 5.3% net initial yield. The disposals largely inherited through M&A include two Ramsay hospitals in Truro and Salford sold for £59 million. Following completion, LondonMetric’s Ramsay exposure will fall to 8.4% of total rent, down from 9.1% at the end of March.

Additional sales comprise two logistics warehouses in Ripon and Normanton (£13 million), a long‑let Lidl store in Basildon (£8.8 million), and two Travelodge hotels in Chippenham (£4.1 million). The company has now sold 32 assets for £175 million this financial year.

Acquisitions total £62 million at a 5.9% yield, including a newly signed £20 million forward funding of a 50,000 sq ft Tesco foodstore in Nuneaton. LondonMetric is also under offer on £140 million of long‑income assets at yields above 6%, with occupiers including Lidl, M&S, Tesco and Waitrose.

Chief executive Andrew Jones said the company had made “excellent progress” in reducing non‑core exposure. “Our activity has helped reduce our Ramsay exposure and further improve our NNN income quality, longevity and granularity,” he said.

“Whilst the investment market is generally quieter over the summer, we have been heavily engaged on reinvestment opportunities that have higher growth prospects, particularly those emanating from pension funds. We expect to transact on a number of these shortly.”