LondonMetric Property has bought £11.6m of roadside properties as part of its long-income strategy.
The properties, acquired through two deals, reflect a 5.1% blended net initial yield with a combined WAULT of 17 years.
These included a sale and leaseback portfolio of five roadside service centres let to Kwik-Fit, bought for £9.6m. The centres are located in Barnet, Whetstone, Hounslow and Hammersmith in London and Slough in Berkshire.
LondonMetric highlighted the portfolio’s “strong underlying residual value supported by alternative use, principally residential”.
The landlord also purchased a new-build roadside asset in Rushden, Northamptonshire, via forward funding, for £2m. The property, let to Euro Garages, will consist of a convenience store, petrol station and drive-through Starbucks. It covers a two-acre site, close to other industrial units and a high-density residential area.
Separately, the landlord has completed the £13.3m disposal of a Royal Mail regional distribution warehouse in Rotherham, South Yorkshire, at a net initial yield of 5%.
Andrew Jones, chief executive of LondonMetric, said: “We continue to actively acquire long-income properties in good locations that offer attractive triple net income and certainty of income growth.
“These assets are let on very long leases to strong covenants with whom we have established relationships and, following our recent equity fundraising, we are in legals on a number of other opportunities with similarly attractive characteristics.”
Cushman & Wakefield acted for Kwik-Fit on the sale and leaseback portfolio.
To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette
