Real estate investment trust LondonMetric has acquired a portfolio comprising two single-tenant triple-net retail assets for £23.3m, reflecting a blended net initial yield of 6.7%.
LondonMetric said on Monday that the two NNN properties generate £1.6m in rent per annum, which equates to £13.90 per square foot.
The FTSE 250-listed firm added the properties, which have a weighted average unexpired lease term of six years, were made up of a 76,000 square foot property in Evesham, predominantly let to The Range and Halfords, and a 42,000 square foot property in Burton-upon-Trent, let to Dunelm, Halfords, and Pets at Home.
Chief executive Andrew Jones said: “These assets are let to the winning retailers across the discount, auto, and pets sectors and offer multiple opportunities to leverage our asset management capabilities.
“The transaction provides an attractive entry price and income yield, which is circa 300bps higher than where long income grocery assets are trading.”
Reporting by Iain Gilbert at Sharecst.com
