22 December 2021

LONDONMETRIC ACQUIRES SAVILLS IM INCOME & GROWTH FUND

FOR £122 MILLION

LondonMetric Property Plc ("LondonMetric") has acquired Savills IM UK Income and Growth Fund ("Fund") in a corporate transaction valued at £122.2 million, reflecting a blended yield on cost of 4.3% and an anticipated reversionary yield of 4.9%.

The Fund owns a portfolio of 15 assets across 482,000 sq ft with 75% in urban logistics and the remainder comprising long income assets. 74% of the assets are located in London and South East with key locations including Croydon, Farnborough, Hounslow, Greenwich, Guildford, Maidstone and Stevenage. A further 12% of the portfolio is located in the Midlands.

The portfolio has a WAULT of 11.0 years (9.2 years to first break) and key occupiers include Decora, Fujitsu, Grafton, HSBC, Iveco, MKM and Volkswagen. It generates £5.35 million of rent per annum with 43% of the income benefitting from contractual uplifts. The assets are under rented and offer attractive reversionary potential and further asset management opportunities.

Andrew Jones, Chief Executive of LondonMetric, commented:

"Following our equity placing last month, we are pleased to have quickly invested a substantial proportion of the proceeds into this high quality portfolio. Reflecting their London & South East weighting, we expect these assets will continue to perform strongly as high occupier demand and diminishing warehouse supply drive rental growth higher."

Jamie Pearson, Savills Investment Management, commented:

"This portfolio has been carefully constructed on behalf of our investors. Our early move to create a portfolio dominated by high quality London & South East Industrial assets has consistently delivered benchmark beating returns and ultimately a favourable exit for our investors."

LondonMetric was advised by Springer Nicolas and Knight Frank.

The Fund was advised by Savills Capital Advisors.

For further information, please contact:

LondonMetric Property Plc

Andrew Jones / Martin McGann / Gareth Price

Tel: +44 (0) 20 7484 9000

Savills Investment Management

Jamie Pearson

Tel: +44(0) 20 7499 8644

Alex Hogan

Tel: + 44 (0) 7730679996

  1. savillsim@citigatedewerogerson.com

FTI Consulting, PR to LondonMetric

Dido Laurimore / Richard Gotla / Andrew Davis

Tel: +44 (0)20 3727 1000

About LondonMetric Property Plc

LondonMetric is a FTSE 250 REIT that owns one of the UK's leading listed logistics platforms alongside a grocery-led long income portfolio, with 16 million sq ft under management. It owns and manages desirable real estate that meets occupiers' demands, delivers reliable, repetitive and growing income-led returns and outperforms over the long term.

Further information is available at www.londonmetric.com

About Savills Investment Management

  • Savills Investment Management is an international real estate investment manager with offices in Amsterdam, Frankfurt, Hamburg, Katowice, Kuala Lumpur (as part of a cooperation agreement with Savills Malaysia), London, Luxembourg, Madrid, Milan, Munich, Paris, Singapore, Stockholm, St. Helier, Sydney, Tokyo and Warsaw.
  • As of 30 June 2021, Savills Investment Management managed total assets of EUR 24.3 billion.
  • Savills Investment Management is the brand name used to represent Savills Investment Management LLP and its subsidiaries.
  • Savills Investment Management LLP is a limited liability partnership registered in England No: OC306423 authorised and regulated by the Financial Conduct Authority.
  • Savills Investment Management is regulated in the UK, Australia, Italy, Germany, Jersey, Japan, Luxembourg and Singapore.

Attachments

Disclaimer

LondonMetric Property plc published this content on 22 December 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 December 2021 11:22:03 UTC.