At Derby, the 10 screen, 37,000 sq ft cinema formed part of a portfolio of ten Odeon Cinemas acquired in 2013 at an overall yield of 7.3%. LondonMetric continues to own five Odeon cinemas with a WAULT of 21 years and rents that rise annually in line with RPI between 1% – 5%.
At Guisborough, the 26,000 sq ft scheme is let to Aldi and Iceland for a further 12 years and was acquired in 2014 at a NIY of 5.8%.
The sales reflect a 15% premium to the March 2017 valuation and materially above the latest valuation.
Andrew Jones, Chief Executive of LondonMetric, commented:
“These assets have generated strong returns from both income and significant yield compression, as investors increasingly look for reliable and predictable income streams.
“The uplift in valuation over book value demonstrates the strength of the current market for long income with guaranteed growth in liquid lot sizes. Furthermore, it provides strong support for our portfolio valuations.”