LondonMetric Property Plc has announced today the disposal of two of its retail parks, Westcroft in Milton Keynes for £27.2 million and Mountbatten in Southampton for £16.2 million, to large UK institutional investors, reflecting a blended net initial yield of 5.7%.
Westcroft Retail Park has 77,000 sq ft of space and was purchased back in August 2013, reflecting a yield on cost of 7.2%. LondonMetric has undertaken five occupier transactions since its acquisition, which will strengthen both the income profile and tenant mix.
The 52,000 sq ft Mountbatten retail park scheme, which was purchased in February 2013, formed part of a larger portfolio off a net initial yield of over 9%. It has since been repositioned with four occupier transactions.
Both disposals crystallise a geared IRR in excess of 30%.
Chief Executive of LondonMetric, Andrew Jones, said: “The retail market continues to evolve, allowing us to create further value through active management of our assets.”
“Over the last two years we have successfully created significant capital value on these assets by lengthening and strengthening the income stream, creating a product which is attractive to purchasers.”
“We remain rational and so we will continue to recycle assets which have delivered on their business plans, and where we believe we can reinvest the proceeds into accretive opportunities.”
LondonMetric were advised by Edgerley Simpson Howe on the Milton Keynes deal.
Previous Post
Britain’s Farmland Values Show Signs of Slowing
