LondonMetric transacts €85m in acquisitions and disposals

LondonMetric Property has announced the acquisition of a £51 mln (€59 mln) portfolio and the disposal of £22 mln (€26 mln) in assets.

LondonMetric asset

The acquired £51.1 mln (€59 mln) portfolio includes two key properties with exceptionally long lease terms (over 100 years WAULT to first break) and a current running yield of 5%. This portfolio generates £2.2 mln (€2.6 mln) in annual rent, significantly below the estimated market rent of £8.2 mln (€9.5 mln).
Specifically, the acquisition comprises a 41,806 m2, highly automated airside logistics facility at East Midlands Airport, leased to UPS. This facility generates £1.16 mln (€1.3 mln) in annual rent with CPI-linked reviews.
It also includes The Clayton Hotel at Manchester Airport, a 365-room property generating £1.07 mln  (€1.2 mln) in annual rent with RPI-linked reviews. The hotel's strong performance is attributed to its proximity to the airport, and the tenant recently received approval for a 214-bed extension.
On the disposal side, LondonMetric sold five former Urban Logistics REIT assets for a total of £22.1 mln (€26 mln). These sales achieved a blended net initial yield (NIY) of 5.4% and were sold 5% above their acquisition price. The divested assets include an urban warehouse in Redditch and a portfolio of four industrial open storage sites located in Telford, Sheffield, Leigh, and Northampton, primarily leased to XPO and DX.
Andrew Jones, chief executive of LondonMetric, commented: "We have continued to monetise assets acquired through takeovers and have now sold eight Urban Logistics REIT assets at strong prices, reflecting the ongoing demand for smaller lot sizes. "The proceeds from these and previous sales have been successfully reinvested into high-quality, NNN and mission-critical assets which are strongly underpinned by significant reversion and materially higher values achievable on vacant possession.