LondonMetric snaps up hotels and convenience assets in £79m acquisition haul
LondonMetric Property has acquired a portfolio of five hotels and two convenience assets as part of a haul of triple net (NNN) acquisitions totalling £79m.
The group has acquired five Premier Inn hotels from Whitbread for £44.4m. The hotels – located in Chatham, Exeter St David’s, Penzance, Southampton, and Witney – are let on new 30 year leases with five-yearly rent reviews.
In addition the group has purchased a 21,000 sq ft convenience development funding in Ludlow, Shropshire for £7.6m. The development is pre-let to M&S on a new 15 year lease with five-yearly rent reviews.
LondonMetric has also acquired a 40,000 sq ft convenience asset in Tunbridge Wells for £7.5m. The asset is let to Booker for a further 14 years with five-yearly fixed rent reviews of 3% per annum.
The group has also acquired a pair of industrial warehouses located in Malton, North Yorkshire and the West Midlands for a total consideration of £19m.
Andrew Jones, chief executive of LondonMetric, said: “The Premier Inn transaction presented a great opportunity to acquire mission critical assets let on very long leases to a FTSE 100 credit with guaranteed rental growth. It adds to our NNN investment in budget hotels, which is benefitting from the ongoing shift in consumer spending towards experience, entertainment and convenience.
“The investments announced today all solidify and improve the granularity of our assets across our winning sectors and we expect to execute on further, similar opportunities in the near term.”