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Recent investment Transaction

LondonMetric buys JP Morgan portfolio - July '13

18th July 2013

LondonMetric Property has bought a pair of retail warehouses in Cardiff and Milton Keynes from clients of JP Morgan Asset Management for £25.8m, reflecting a combined net initial yield of 8%. The deals, which are being funded from existing resources, are at Westcroft Retail Park in Milton Keynes, where there is 75,600 sq ft of space across eight units let to tenants including Boots, B&M, McDonalds and KFC. The park is fully occupied with an average unexpired lease term of 6.8 years to expiry and first break. In Cardiff, Seager Retail Park comprises 33,800 sq ft of bulky goods consented space let to Wren Kitchens, Carpetright and Pets at Home. The park is fully occupied with an average unexpired lease term of 8.3 years. Following the acquisition, the LondonMetric retail investment portfolio will comprise 35 assets with a combined portfolio value of £384.5m, representing 33% of the enlarged LondonMetric portfolio. The retail investment portfolio’s occupancy is 98%, with an average passing rent of £16.40 psf and a weighted average unexpired lease term of 10.6 years (9.8 years to first break). Fixed rental uplifts across the retail investment portfolio represent 24% of total retail rental income, and 10% of the group’s contracted rental income. Andrew Jones, chief executive of LondonMetric, said: “Both parks offer significant asset management opportunities to re-gear the leases, improve the tenant mix and to grow the income.” Edgerley Simpson Howe advised LondonMetric and Yarnold & Partners and Cushman and Wakefield advised the clients of JPMorgan Asset Management.