LONDONMETRIC SELLS MARTLESHAM HEATH RETAIL PARK

FOR £22.0 MILLION

LondonMetric Property Plc (“LondonMetric”) announces that it has sold its retail park in

Martlesham Heath, Ipswich, for £22.0 million, reflecting a NIY of 5.2%.

The 48,000 sq ft retail park was acquired in 2013 for £10.4 million. LondonMetric has executed

a number of asset management initiatives during its ownership, which have helped attract

new retailers such as Hobbycraft, Mountain Warehouse, Card Factory, Shoe Zone and

Poundland, whilst existing tenant M&S, recently 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.

The property has generated a profit on cost of 40% and an ungeared return of 13% pa. The

sale is to a long-term investor and reflects a premium to March 2018 book value.

Andrew Jones, Chief Executive of LondonMetric, commented:

“Whilst 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.

Wigley sells Royal Mail depot in Coventry

The Wigley Group, advised by ESH, has sold its freehold interest in the Royal Mail delivery office in Coventry to a Private Buyer for £3.5 million, reflecting a net initial yield of 5.23%.

The Property, which comprises a standalone unit of 17,500 sq ft GIA plus external car parking and delivery yard, was developed by The Wigley Group in 2009 and is let in its entirety to Royal Mail Group. The investment provides an annual rental income of £195,000 pa (£11.14 per sq ft) and an unexpired lease term of 11 years.

B&M Retail have taken a new 10 year lease on the Homebase unit and Matalan have re-geared their lease for an additional 10 year term at Wolstanton Retail Park in Stoke.

ESH act for Aberdeen Standard.

AEW sell out of short income Retail Park in Hull

ESH marketed and sold Stoneferry Retail Park in Hull on
behalf of AEW. The sale price was £1.8 million and the park was fully let and
producing income of £228,591 per annum for approximately a further 5 months.
DSG and Bensons for Beds both have leases expiring in May 2019 and a Burger
King franchisee was secured on a lease expiring in April 2029 at a rent of
£63,500.

Scarborough Borough Council has completed its first acquisition since adopting a new commercial property investment strategy.

ESH can reveal that the council has purchased the Travelodge Hotel in central Scarborough for £14m from a UK charity.

The 140-room hotel on St Nicholas Cliff is located above the town’s South Bay. It is let to Travelodge for an unexpired term of almost 30 years with five yearly rent reviews. Following September’s rent review, the price reflects a net return of 5.9%.

Richard Bradley, Scarborough Borough Council’s commercial director, said: “This is our first major investment since adopting our commercial property investment strategy earlier in the year. The strategy focuses on acquiring commercial property investments that can result in positive financial returns for the council to help support our public service delivery. The purchase of the Travelodge Hotel building was an ideal opportunity for us and we will continue to seek other investment opportunities going forward.”

Scarborough Borough Council was advised by Edgerley Simpson Howe and NJB Hotel & Leisure Property. It is the latest council to invest in commercial property.

Data exclusively compiled for Property Week found that councils’ spending spree totalled £994m between January and June, and Scarborough’s acquisition will further add to the total that is expected to beat last year’s £1.8bn figure by the year-end.

Castlefields Retail Park has been sold by Blackrock to Tesco Pension Fund. The scheme is anchored by a B&Q, tenants also include Tapi, M&S, Dunelm, Pets At Home, and Pizza Hut and extends to over 111,000 sq ft. The price paid is £25.75 million reflecting 6% niy. ESH acted for Blackrock.