LondonMetric Property invests €91m in five triple net lease assets

UK REIT LondonMetric Property invested £78.5 mln (€90.8 mln) in five triple net lease (NNN) transactions, acquiring nine assets.

The assets have an initial yield of 5.5%, projected to rise to 6.3% over five years.
These acquisitions will generate an additional £4.6 mln (€5.3 mln) in annual rent and have a weighted average unexpired lease term (WAULT) of 23 years.
The acquisitions include:
Five modern Premier Inn hotels (446 recently refurbished bedrooms) from Whitbread for £44.4 mln (€51.4 mln), with new 30-year leases and CPI-linked rent reviews every five years. These are located in Chatham, Exeter St David’s, Penzance, Southampton, and Witney.
A 7,432 m2 logistics warehouse development in Malton for £10.7 mln (€12.4 mln), pre-let to Severfield Plc on a new 20-year lease with annual CPI-linked rent reviews.
A 6,317 m2 recently developed logistics warehouse in the West Midlands for £8.3 mln (€9.6 mln), leased to Bilco Access Solutions (part of Quanex) for another 12 years.
A 1,951 m2 convenience development in Ludlow for £7.6 mln (€8.8 mln), pre-let to M&S on a new 15-year lease with RPI-linked rent reviews every five years.
A 3,716 m2 convenience asset in Tunbridge Wells for £7.5 mln (€8.7 mln), leased to Booker for another 14 years with fixed 3% annual rent reviews every five years.
Following these hotel acquisitions, Whitbread (through its Premier Inn brand) is now LondonMetric’s sixth-largest tenant, contributing £6.4 mln (€7.4 mln) in annual rent (1.5% of total rent). These new assets enhance LondonMetric’s existing portfolio of 75 NNN budget hotels.
Andrew Jones, Chief Executive of LondonMetric, commented: “The Premier Inn transaction presented a great opportunity to acquire mission-critical assets let on very long leases to an FTSE 100 credit with guaranteed rental growth. It adds to our NNN investment in budget hotels, which is benefitting from the ongoing shift in consumer spending towards experience, entertainment, and convenience. “The investments announced today all solidify and improve the granularity of our assets across our winning sector,s and we expect to execute on further, similar opportunities in the near term.”