LondonMetric sells Martlesham Heath retail park for £22m
LondonMetric Property has sold its retail park in Martlesham Heath, Ipswich, for £22m, reflecting a NIY of 5.2%.
The 48,000-sq ft retail park was acquired in 2013 for £10.4m since when LondonMetric’s asset management has attracted new retailers such as Hobbycraft, Mountain Warehouse, Card Factory, Shoe Zone and Poundland, while existing tenant M&S extended its foodhall to 20,000 sq ft on a new 15-year lease.
The park is fully let off average rents of £25.70 psf with a weighted average lease term of 12 years to expiry and 10 years to first break.
Chief executive Andrew Jones said: “While demand for physical retail assets continues to polarise rapidly, investor appetite for long and strong income remains healthy. The sale is in line with our strategy of divesting our last remaining operational retail assets upon completion of their business plans. We retain three retail parks within our direct portfolio reflecting 5% of our assets.
“Our investments will continue to target high quality opportunities within the logistics and convenience sectors where income certainty is greater and income growth prospects are superior.”
LondonMetric was advised by Edgerley Simpson Howe.