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LondonMetric Property PLC - London-based property investor - Acquires a retail property in south east London for £38.0 million through one of its joint ventures. Its share is £19.0 million, reflecting an initial yield on costs to the firm of 5.4%, rising to 5.7% upon completion of short-term asset management initiatives. Following the acquisition, LondonMetric holds a 69% interest in the joint venture.
The property is 68,000 square feet and located on a five acre site on the Old Kent Road in London. It is let to B&Q, Pets at Home and Halfords. It also has planning for 1,100 residential apartments, LondonMetric says.
At the property, LondonMetric extends the weighted average unexpired lease term and increases the annual rent by 54% to £2.1 million from £1.4 million. Upon settlement of the next contractual rent review and completion of other asset management initiatives, LondonMetric expects the yield on cost to increase to 7%. The property has a triple net lease, meaning the tenant pay all costs of the property, including tax, insurance and upkeep.
Current stock price: 182.90 pence, up 0.4% on Thursday morning in London
12-month change: down 34%
By Heather Rydings, Alliance News senior economics reporter
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