Property company LondonMetric has acquired Savills IM Income and Growth Fund in a corporate transaction valued at £122.2m, reflecting a blended yield on cost of 4.3% and an anticipated reversionary yield of 4.9%.
LondonMetric said on Wednesday that Savills’ portfolio of 15 assets generates £5.35m of rent per annum and has a weighted average unexpired lease term of 11 years, with key occupants including the likes of Decora, Fujitsu, Grafton, HSBC, Iveco, MKM and Volkswagen.
74% of the assets were located in London and the South East of England, with key locations including Croydon, Farnborough, Hounslow, Greenwich, Guildford, Maidstone and Stevenage.
The FTSE 250-listed firm stated it believes the assets were under rented and offered “attractive reversionary potential” and “further asset management opportunities”.
Chief executive Andrew Jones said: “Following our equity placing last month, we are pleased to have quickly invested a substantial proportion of the proceeds into this high-quality portfolio. Reflecting their London & South East weighting, we expect these assets will continue to perform strongly as high occupier demand and diminishing warehouse supply drive rental growth higher.”
