LondonMetric Property Plc announces today its first Interim Management Statement following the completion of the merger between London & Stamford Property Plc (“London & Stamford”) and Metric Property Investments plc (“Metric”). The statement covers the period 1 October 2012 to 1 February 2013 and represents substantially the pre-merger trading performances of both companies.
- Completion of the merger of London & Stamford and Metric announced on 25 January 2013, to create a new top 10 REIT with a high quality property portfolio of circa £1.04 billion
- Exchanged contracts to acquire a portfolio of six retail warehouse assets for £92.4 million reflecting a net initial yield of 7.8%
- Disposal of our 15.7% share in Meadowhall Shopping Centre realising £95.8 million (net of debt) at a net initial yield of 5.1%
- Completion of the acquisition of 107 residential units at Seward Street, Islington, EC1 for £45.7 million
- Acquisition on behalf of Metric Income Plus Partnership (“MIPP”) of three retail parks for £20.7 million (LondonMetric share: £6.9 million)
- Nine retailer transactions completed across 95,000 sq ft at average rents 11% above previous rental levels
- 102 new lettings and renewals concluded across the residential investment portfolio at 2.75% above previous passing rents
- Completed retail developments at Bishop Auckland Phase I and Cannock with 100% and 87% occupancy, respectively.
Andrew Jones, Chief Executive of LondonMetric, said:
“We are excited to have announced the £92.4 million retail portfolio acquisition so soon after completing the merger, as well as the value enhancing asset management activity that has been undertaken across the portfolio, while the merger was being progressed.
“We are also looking at capitalising on our strong retailer relationships to provide real estate solutions in the distribution sector. This is a sector where demand from retailers is now dominating space requirements as they continue to respond to the growth in multi-channel retailing.
“Deep occupier demand for our buildings is a critical ingredient in assessing where we choose to invest and will ultimately allow us to deliver superior returns. We will continue to adopt our disciplined approach of focusing on assets that are well let at sustainable rents to good covenants, with high occupier contentment.
“There is compelling evidence that more attractive opportunities across the market are becoming available as the world continues to deleverage and a much broader range of vendor is beginning to appear. We are pursuing a number of opportunities to utilise our firepower as the spread between the cost of funding and property yields continues to offer attractive cash-on-cash yields.
“We have launched a £100 million tender offer for almost 88.6 million shares or circa 12.4% of our issued share capital. The tender offer price is 112.9p. To the extent that the tender offer is not fully taken up, we are confident that we will be able to invest the additional firepower to enhance shareholder value.”