UK Property - comment

London Metric, a UK listed REIT, has announced the sale of some assets over the last couple of days.  These transactions are small in size but highlight that the commercial property is not dead in the UK.  LondonMetric are a motivated seller disposing non-core assets from the Mucklow acquisition.  It should be noted they have achieved a 25% uplift against the allocated costs of these assets.  

LondonMetric sold a Waitrose Store in Malmesbury, Wiltshire (25 miles north of Bristol/Bath) for £9.6m reflecting a NIY of 4.66%.  The asset was acquired from Waitrose as part of a wider sale and leaseback in June 2020, with 17 years left on the lease (12 years to the break).  

Other assets also sold include high street retail in Sunningdale (Surrey) and Rayleigh (Essex) for £7.3m, at a NIY of 8.62%.  The sale includes 3 properties with a total of 15 units and have a WAULT of 4yrs.

In addition, London Metric have sold a portfolio of 4 multi-let industrial estates in Birmingham and Rugby, for £40.5m reflecting a NIY of 6.2%, with a WAULT of 3yrs.