LondonMetric increases investment on acquisitions

6th Feb 2014 10:39

LondonMetric Property ramped up its investment activity in the period from October 1st to February 5th as the company repositioned its portfolio.The UK British property investment group made £201.9m worth of acquisitions during the period at an average yield of 7.9% across core out of town and retail distribution sub-sectors. The firm also made £129.7m worth of disposals at an average yield of 6%, including six retail assets and the sale of Unilever's headquarters in Leatherhead.Residential sales came to £82.5m across 167 units, 3.1% ahead of September valucations. Net rental income rose by £1.0 million per annum following eight asset management transactions.The investment portfolio occupancy stood at 99.4%, up slightly from 99% in September 2013.Chief Executive, Andrew Jones, said: "The pace of our investment activity has been intense with over £1bn (LondonMetric share) of purchases and sales transacted since the merger. Our core out of town retail and distribution portfolios now account for 85% of our total property portfolio, following the recent announcement of two large off market portfolio acquisitions. Our ability to consistently source off market deals remains a considerable competitive advantage in a market experiencing increasing liquidity." He said the major repositioning has allowed the firm to move towards full dividend cover by the end of the financial year. The acquisitions will help grow the business in the future, Jones concluded.Shares rose 0.86% to 140.10p at 11:00 on Thursday. RD