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Londonmetric acquires two long income assets

By Iain Gilbert

Date: Wednesday 03 Jun 2020

Londonmetric acquires two long income assets

(Sharecast News) - Real estate investment trust Londonmetric acquired two long income assets on Wednesday for a total of £11.6m, reflecting a blended net initial yield of 5.1%.
Londonmetric said the first transaction comprised a sale and leaseback portfolio of five London-based roadside service centres, let to Kwik Fit, for £9.6m.

The FTSE 250-listed group's second purchase, made via a forward funding contract, was of a prominent new build roadside asset in Rushden, let to Euro Garages, for £2m. The property will consist of a convenience store, petrol station and a drive-through Starbucks.

Together, Londonmetric said the assets had a weighted average unexpired lease term of 17-years and benefitted from contractual rental uplifts.

Chief executive Andrew Jones 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."

Elsewhere, Londonmetric revealed that it had completed the disposal of a regional distribution warehouse in Rotherham for £13.3m.

As of 0910 BST, Londonmetric shares were up 0.56% at 215.80p.


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