LondonMetric Property Plc Acquires M&S Simply Food Portfolio

Posted: 2nd June 2015 08:43

LondonMetric Property Plc ("LondonMetric" or the "Company"), in partnership with Marks & Spencer ("M&S"), has assembled a portfolio of five M&S Simply Food stores for £26.0 million to add to its convenience retail portfolio.
It has simultaneously re-geared the leases on four of the properties to new 20 year leases, and the fifth property will consist of two units let to M&S for 15 years and to Aldi for 20 years.
The five properties have a WAULT of 19.2 years and an overall rental income of £1.5 million pa, subject to contractual uplifts. The purpose built foodstores are situated across various locations in England including the Isle of Wight, Liverpool and Ferndown, and the average property size is 16,400 sq ft.
These acquisitions are in addition to a recent letting of 11,300 sq ft to M&S for 20 years at the Company's retail park in Tonbridge. The average yield on cost for all of the M&S transactions is 6.3%.
Following these acquisitions, LondonMetric's convenience retail portfolio will increase to £49.7 million, comprising ten properties let to retailers including Aldi, Boots, Iceland and M&S, with a WAULT of 15.9 years and with 63% of income subject to fixed uplift or RPI increases.
Andrew Jones, Chief Executive of LondonMetric, commented:
"The convenience food sector is continuing to grow at the expense of the traditional larger foodstores and we will look to increase our exposure to this sub-sector in expectation of sustainable rental growth and further yield compression. These transactions with M&S are further evidence of the quality of our relationships with the UK's leading retailers and our ability to work alongside them as their real estate partner of choice."

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