LondonMetric Property buys PS79 million of triple net lease assets
LondonMetric Property PLC on Thursday said it is solidifying and improving the granularity of its assets as it announced acquisitions.
The London-headquartered real estate investment trust said it acquired £78.5 million of triple net lease assets across five transactions with a net initial yield of 5.5%, which it expects to increase to 6.3% over five years.
The nine assets add £4.6 million of additional rent per year, LondonMetric said.
It includes a portfolio of five modern Premier Inn hotels from Whitbread PLC, bought for £44.4 million and let on new 30 year leases with five-yearly rent reviews linked to the consumer price index.
LondonMetric Chief Executive Officer Andrew Jones 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.’
LondonMetric shares were 0.5% higher at 180.60 pence each on Thursday morning in London.
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