Loughborough Morrisons sold for £32.5m

Morrisons
By grassrootsgroundswell ('Morrisons') [CC BY 2.0 (http://creativecommons.org/licenses/by/2.0)], via Wikimedia Commons

A Morrisons food store in Loughborough has been sold for £32.5 million.

LondonMetric Property Plc acquired the asset for £16.8 million in 2010 at a NIY of 5.72% and recently completed a comprehensive refurbishment and 12,000 sq ft extension at a cost of £7.9 million. Morrisons subsequently entered into a new 25 year lease in January 2017 on the extended 55,000 sq ft store at an annual rent of £1.5 million pa with contractual RPI uplifts.

The sale to a UK Pension Fund will complete in March 2018 at a price 11% above the property’s last reported book value and will crystallise a profit on cost of 26%.

LondonMetric was advised on the deal by Wilkinson Williams. Allsop advised the purchaser.

Andrew Jones, chief executive of LondonMetric, said: “The lease regear and extension at Loughborough demonstrates our ability to partner with retailers to create value through our asset management and development capabilities.

“This is a very good asset that has generated attractive income and capital returns and the pricing reflects the strong institutional demand for long let income with guaranteed income growth”.