LondonMetric completes acquisition of assets

26th Mar 2014 08:03

LondonMetric Property has completed the acquisition of 27 DFS assets from administrator Delphi Properties Limited.The group has bought the assets through its joint venture, LMP Retail Warehouse JV Property Unit, for £175m, representing a net yield of 9.3%.At the same time the joint venture, in which LondonMetric holds a 30.5% interest, has sold 10 of the portfolio assets in three separate transactions for £47.1m, an overall net initial yield of 8.6%.The remaining portfolio of 17 assets, worth £136.4m, comprise 15 retail warehouses, one industrial unit and DFS' headquarters and distribution centre, covering a total area of 572,000 square feet.The associated rent roll is £13m per annum with a running yield of 9.0%."This is a high quality portfolio let to the UK's leading furniture retailer and one of our strongest and longstanding retail partners," said Chief Executive Andrew Jones. "The disposals reflect the increasing institutional appetite for long income assets let to the best occupiers. We look forward to working with DFS across the operational portfolio to strengthen and lengthen the sustainable income profile for our mutual benefit."Shares jumped 0.90% to 08:09 on Wednesday.RD