LondonMetric Property Executes £91 Million in Strategic Asset Transactions

LondonMetric Property Plc (LON: LMP) has announced a series of strategic investment activities totaling £91 million, signaling a clear shift in its portfolio composition.

The transactions involve the disposal of £64.4 million in retail assets and the acquisition of £26.2 million in warehousing properties. These moves reflect LondonMetric's ongoing strategy to optimize its holdings and capitalize on prevailing market conditions.

The disposals include two mature out-of-town retail assets, sold at a Net Initial Yield (NIY) of 4.98%. The most significant sale was the Cantium retail park in South East London, fetching £48.5 million (LondonMetric share: £33.5 million).

This park, acquired in 2022 for £38 million, saw its annual rent increase from £1.4 million to £2.5 million (£35 psf) through proactive asset management. Additionally, a new 40,000 sq ft M&S store in Weymouth was sold for £15.9 million, marking LondonMetric's complete exit from the 110,000 sq ft development.

These disposals align with the company's book values and contribute to over £280 million in asset sales this financial year, a notable increase from £185 million reported in September 2025. The sales demonstrate LondonMetric's ability to realize value from its retail assets after successful asset management initiatives.

On the acquisition front, LondonMetric has invested £26.2 million in two warehouses leased to Booker, acquired at a NIY of 6.90%. This includes a 159,000 sq ft logistics warehouse in South Elmsall, Doncaster, acquired for £16.9 million, generating an annual rent of £1.2 million and offering potential for further expansion. A 93,000 sq ft Booker Cash & Carry in Southend-on-Sea was also acquired for £9.25 million, producing an annual rent of £0.7 million.

The acquisition of logistics assets at a higher yield than the disposed retail assets highlights LondonMetric's strategic focus on sectors with stronger growth prospects. The potential expansion of the Doncaster warehouse further underscores the company's commitment to value creation through strategic investments.

Andrew Jones, Chief Executive of LondonMetric, commented, “Following strong approaches for high quality long income product, we have decided to monetise two mature assets where we have completed on our business plans. Some of the sale proceeds have already been deployed into NNN assets at yields c.200bps higher and we expect to announce further accretive NNN acquisitions shortly.”