LondonMetric offloads £60 million worth of retail space

Retail property giant LondonMetric has sold three retail parks across the country, totaling a value of over £60 million.

A 104,000sq ft retail park in Christchurch, first purchased back in 2013 for £27.1 million, was sold to Orchard Street Investment Management for £34.5 million at a net initial yield of 5.65 per cent.

Since its acquisition four years ago, major retailers like DFS and Home Bargains, alongside high street chains Costa and Subway, opened their doors at the retail park.

Similarly, the Alban Retail Park spanning 66,000sq ft was sold to Tritax Property for £14.4 million.

Since acquiring the property in 2010 for just £9.2 million, increased rental income and the introduction of B&M and Dunelm, achieved a yield of £5.9 per cent.

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Meanwhile a DFS property has been sold as part of a joint venture in Maidstone.

The deal saw Helix Property acquire the space for £12 million and, with LondonMetric securing £3.7 million on the deal reflecting a yield of 7.5 per cent.

“These have been very successful investments and we will continue to sell our well let mature retail assets upon completion of their business plans,” LondonMetric chief executive Andrew Jones said.

“Our retail park investments have halved over the last two years and now represent 13% of our total portfolio.

“The sale proceeds will be invested into our logistics investment and development programmes where rental growth prospects look more attractive.”

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