LondonMetric Property Plc has announced, on behalf of its DFS joint venture ‘Joint Venture’, the sale of its DFS property in Enfield for £24.5 million to a large UK institution, crystallising a profit on cost of 19% and a geared IRR of 30%.
The 32,000 sq ft unit, which LondonMetric has a share of £7.5 million, is let at a rent of £1.7 million per annum, reflecting a net initial yield of of 6.6%. Joint Venture acquired it back in March 2014 as part of a portfolio of 27 DFS stores from administrators to Delphi Properties Limited, off an overall NIY of 9.3%.
LondonMetric has also announced it has sold its 25,000 sq ft Watling Retail Park in Cannock for £7.5 million to a UK institution reflecting a NIY of 6.15%. It was developed by LondonMetric in November 2012, off a yield on cost of 8.6%.
Watling Retail Park is now fully let to DFS, Carpetright and Porcelanosa, with a remaining WAULT to break of 13.3 years.
Executive of LondonMetric, Andrew Jones, commented: “We view the retail property sector opportunistically and will recycle assets which have delivered on their business plans.
“Both of these assets have generated very strong returns for us and will continue to capitalise on the high demand from institutions for strong, well-let real estate.”
Advising Joint Venture on Endfield was LondMetric, while Strutt & Parker advised LondonMetric on Cannock.
