LONDON (ShareCast) - (Sharecast News) - LondonMetric has acquired £21.9m of convenience service stations across three separate transactions, it announced on Tuesday, reflecting a blended net initial yield of 5.1%.
The FTSE 250 company said the seven assets had a weighted average unexpired lease term of 18 years, and all benefited from contractual rental uplifts.

It said the transactions comprised four "modern" Co-op convenience service stations in Basingstoke, Dagenham and South Wales, acquired for £12.5m.

Those assets were let on a weighted average unexpired lease term of 16 years, benefitted from fixed rental uplifts, and were 20% reversionary;

The acquisitions also included two London convenience service stations in Stamford Hill and Plumstead, acquired for £5.4m through a sale-and-leaseback arrangement with TG Convenience Stores.

It said those properties were let for 20 years, and benefited from inflation-linked rent reviews.

The final part of the transactions was a new Shell and Budgens service station in Worcester, acquired for £4m.

It said the property was let to Motor Fuel Group for a further 23 years, and benefited from inflation-linked rent reviews.

Separately, LondonMetric said it had sold £4.2m of Kwik Fit service stations and IMO car washes at a net initial yield of 4.7%.

Those assets were originally acquired through larger portfolio transactions.

"These long income acquisitions offer attractive triple net income and are let on long leases to strong covenants with certainty of income growth," said chief executive officer Andrew Jones.

"Given their strong locations, they are also underwritten by vacant possession value."

At 0854 GMT, shares in LondonMetric Property were down 0.12% at 229.12p.

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