LondonMetric Property Plc has announced a major series of transactions totaling £120 million, involving £70 million in warehouse acquisitions and £50 million in non-core asset disposals. The moves align with the company’s ongoing strategy of repositioning its portfolio toward high-quality assets with growth potential.

Acquisitions Overview

The company has acquired seven warehouses for £70 million, with a weighted average unexpired lease term (WAULT) of 15 years and an initial net income yield (NIY) of 5.8%. This yield is expected to rise to a minimum of 6.1% within two years and 6.5% after five years, with 91% of rents subject to open market reviews.

Key acquisitions include:

• Avonmouth Logistics Warehouse: A 182,000 sq ft facility let to Farmfoods Ltd, acquired via a sale and leaseback for £26.4 million. The property benefits from five-yearly rent reviews tied to the higher of open market value (OMV) or CPI+1%.
• Wednesbury Urban Logistics Park: A fully let 211,000 sq ft urban logistics park purchased for £25 million, offering immediate asset management opportunities with a low site density of 21%.
• Trade Warehouses Portfolio: Five trade warehouses totaling 113,000 sq ft across Leeds, Derby, Swindon, Bolton, and Farnham were acquired for £18.9 million. Tenants include major companies like Travis Perkins and MKM.

Disposals Overview

LondonMetric has also sold £50 million of non-core assets, comprising ten former LXi assets and one former CTPT asset. These disposals were made at a blended NIY of 7.2%, in line with book values as of March 31, 2024. Highlights of the disposals include:

• Milton Keynes Compass Training Centre: A 169,000 sq ft facility sold for £23.7 million.
• York Car Showroom: A 34,000 sq ft showroom in York let to Vertu, sold for £10.5 million.
• Basildon Self-Storage: A 34,000 sq ft asset let to Lok’nStore, sold for £10 million.
• Doncaster Nissan Showroom: An 18,000 sq ft facility sold for £2.5 million, along with seven care homes sold for £3.2 million.

Strategic Reinvestment

Andrew Jones, Chief Executive of LondonMetric, emphasized the strategic importance of the transactions, stating, “We have been very clear on our desire to monetize some assets acquired from our corporate takeovers. We have now sold approximately £100 million of LXi assets, with 13 of the 16 non-core CTPT assets sold at an average of 14% above our original underwrite values.”

Jones added that the company has successfully reinvested the proceeds into higher-quality properties in stronger sectors, driving accelerated income growth.