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.

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

Recommended

Has the “jam tomorrow” bubble popped already?
Stockmarkets

Has the “jam tomorrow” bubble popped already?

Fund managers have had a good year so far. John Stepek looks at what to expect from markets until year end.
6 Dec 2021
Three stocks that should profit from the dash for digital growth
Share tips

Three stocks that should profit from the dash for digital growth

Professional investor Christopher Versace of the Digital Infrastructure and Connectivity UCITS ETF picks three digital growth stocks to buy now.
6 Dec 2021
JD Wetherspoon: why investors should head to the pub
Trading

JD Wetherspoon: why investors should head to the pub

Pub group JD Wetherspoon is a solid operator, and is due a bounce when the pandemic eases. Matthew Partridge picks the best way to play it.
6 Dec 2021
Share tips of the week – 3 December
Share tips

Share tips of the week – 3 December

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
3 Dec 2021

Most Popular

Bubbles grow in global property markets as house prices continue to rise
Property

Bubbles grow in global property markets as house prices continue to rise

House prices grew by 6% in the year to mid-2021 in 25 global cities, with the German property market in particular showing signs of overheating.
3 Dec 2021
Investing in time
Sponsored

Investing in time

SPONSORED CONTENT – Watch collecting can be addictive and expensive, but it can also be a very sound investment strategy
3 Dec 2021
Three safe bets on the growing online gambling sector
Share tips

Three safe bets on the growing online gambling sector

Professional investor Aaron Fischer, creator of the Fischer Sports Betting and iGaming ETF, picks three of his favourite online gambling stocks.
29 Nov 2021