(Alliance News) - LondonMetric Property PLC on Tuesday announced it has acquired seven convenience service stations worth a total of GBP21.9 million across three separate transactions.
The FTSE 250-listed real estate investment trust focused on urban logistics said the seven assets have a weighted average unexpired lease term of 18 years and a blended net initial yield of 5.1%.
LondonMetric said the transactions included four Co-Operative Group Ltd convenience service stations in Basingstoke in Hampshire, Dagenham in Essex and South Wales for GBP12.5 million, which are all let on a weighted average unexpired lease term of 16 years.
It also acquired two London convenience service stations in Stamford Hill and Plumstead for GBP5.4 million through a sale and leaseback arrangement with TG Convenience Stores, which are let for 20 years, as well as a new Shell and Budgens service station in Worcester for GBP4.0 million, which is let to Motor Fuel Group for a further 23 years.
Separately, LondonMetric sold GBP4.2 million of Kwik Fit service stations and IMO car washes at a net initial yield of 4.7%.
"These long income acquisitions offer attractive triple net income and are let on long leases to strong covenants with certainty of income growth. Given their strong locations, they are also underwritten by vacant possession value," said Chief Executive Andrew Jones.
Shares in LondonMetric were down 0.3% at 228.80 pence in London early Tuesday.
By Zoe Wickens; zoewickens@alliancenews.com
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