16 February 2022
LONDONMETRIC PROPERTY PLC
LONDONMETRIC DISPOSES OF A NON CORE CAR SHOWROOM FOR £15M AND
ACQUIRES A SHORT LET NNN RETAIL ASSET FOR £8 MILLION
LondonMetric Property Plc (“LondonMetric”) has disposed of a car showroom investment in Solihull for £15.0 million, reflecting a NIY of 4.75%.
The 52,000 sq ft asset was acquired as part of the Savills IM Fund acquisition in December 2021. It is let to Johnsons Cars operating as Volkswagen for a further 17 years and generates £0.8 million p.a. of rent (£15.00 psf).
Completion of the sale has been delayed to the end of April which will result in an additional £0.2 million of rent.
Separately, LondonMetric has acquired a 40,000 sq ft NNN retail asset in Middleway, Birmingham for £8.0 million, reflecting a NIY of 7.8%. The prominently located property is let to Dunelm and Currys with a WAULT of two years and generates £0.7 million p.a. of rent (£15.00 psf, excluding ancillary income).
Andrew Jones, Chief Executive of LondonMetric, commented:
“We identified the Solihull property as a non-core asset at the time of purchase. We have taken advantage of the strong appetite for long let income to swiftly dispose of the property at a premium.
“The proceeds of the sale have been reinvested into a better located property offering a significantly higher yield with material asset management potential.”