22 December 2021
Londonmetric Acquires Savills Im Income & Growth Fund for £122 Million
LondonMetric Property Plc (“LondonMetric”) has acquired Savills IM UK Income and Growth Fund (“Fund”) in a corporate transaction valued at £122.2 million, reflecting a blended yield on cost of 4.3% and an anticipated reversionary yield of 4.9%.
The Fund owns a portfolio of 15 assets across 482,000 sq ft with 75% in urban logistics and the remainder comprising long income assets. 74% of the assets are located in London and South East with key locations including Croydon, Farnborough, Hounslow, Greenwich, Guildford, Maidstone and Stevenage. A further 12% of the portfolio is located in the Midlands.
The portfolio has a WAULT of 11.0 years (9.2 years to first break) and key occupiers include Decora, Fujitsu, Grafton, HSBC, Iveco, MKM and Volkswagen. It generates £5.35 million of rent per annum with 43% of the income benefitting from contractual uplifts. The assets are under rented and offer attractive reversionary potential and further asset management opportunities.
Andrew Jones, Chief Executive of LondonMetric, commented:
“Following our equity placing last month, we are pleased to have quickly invested a substantial proportion of the proceeds into this high quality portfolio. Reflecting their London & South East weighting, we expect these assets will continue to perform strongly as high occupier demand and diminishing warehouse supply drive rental growth higher.”
Jamie Pearson, Savills Investment Management, commented:
“This portfolio has been carefully constructed on behalf of our investors. Our early move to create a portfolio dominated by high quality London & South East Industrial assets has consistently delivered benchmark beating returns and ultimately a favourable exit for our investors.”
LondonMetric was advised by Springer Nicolas and Knight Frank.
The Fund was advised by Savills Capital Advisors.