Advertisement

LondonMetric buys Primark distribution unit for 60.5m pounds

FTSE 250-listed LondonMetric Property has acquired the Primark Distribution Unit, Thrapston, from the Moorfield Real Estate Fund II for 60.5m pounds.

FTSE 250-listed LondonMetric Property has acquired the Primark Distribution Unit, Thrapston, from the Moorfield Real Estate Fund II for 60.5m pounds.

The Thrapston unit is Primark's central distribution centre for the UK and is let to Primark Stores until October 2032 at a rental of £3.9m per annum.

LondonMetric reported that the lease benefited from annual fixed uplifts of 1.5% and upward-only open market rent reviews every five years.

Advertisement - Article continues below

The company said that the acquisition would be funded from existing resources and the purchase price reflected a net initial yield after purchasers' costs of 6.4%.

It said the acquisition would show an initial cash return of 11.5% per annum and a geared total return of over 15% per annum. The returns would grow annually as the built-in uplifts were triggered, the company added.

Andrew Jones, Chief Executive Officer of LondonMetric, commented: "We regard this as a key area for growth within our core portfolio and aim to capitalise on this dynamic further by leveraging our deep occupier relationships to secure more opportunities."

He added: "Primark is one of the UK's most successful retailers and the attractive lease terms reflect the demand/supply tensions within this sector. The investment offers excellent cash returns and exposure to prime real estate, let for nearly 20 years to a fantastic covenant, with guaranteed annual rental increases."

LondonMetric was created through the merger of London & Stamford Property and Metric Property Investments.

Following the acquisition, the LondonMetric distribution portfolio comprises 13 assets with a combined value of approximately £245m and a weighted average unexpired lease term of 13 years. This represents 22% of the enlarged LondonMetric portfolio.

LondonMetric' share price was down by 0.29% to 104.20p at 13:27 on Wednesday.

MF

Advertisement
Advertisement

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

An economics lesson from my barber
Inflation

An economics lesson from my barber

On reopening his shop after lockdown, Dominic Frisby’s barber doubled his prices. It’s all part of the post-Covid inflation process – and we’re going …
8 Jul 2020
What gold, bonds and tech stocks have in common
Stockmarkets

What gold, bonds and tech stocks have in common

"Risk off" or "safe haven" assets such as gold and government bonds have been doing well lately. But so have riskier tech stocks. That seems to defy c…
10 Jul 2020
House price crash: UK property prices are falling – so where next?
Property

House price crash: UK property prices are falling – so where next?

With UK property prices falling for the first time in eight years, are we about to see a house price crash? John Stepek looks at what’s behind the sli…
2 Jul 2020