LondonMetric Property invested £362.1m in the last quarter, including the acquisition of nine properties for £157.8m at an average yield of 6.1%.
The company, which issued an interim management statement (IMS) for the period 1 October 2014 to 26 January 2015 this morning, also revealed occupier transactions were completed across 94,000 sq ft, generating rental uplift £900,000 on average lease lengths of 15.5 years.
The period included the sale of One Carter Lane for £138.8m at an exit yield of 4.3%, and retail disposals of £61.6m at an average exit yield of 6.3%. There have also been sales of a further 11 residential units at Moore House - 36 out of 149 units have now been sold or are under offer.
During the period the investment portfolio was substantially repositioned with 90% now concentrated in core sectors of retailer led distribution and out of town retail.
LondonMetric also committed to 2m sq ft of development across five locations, including the 1m sq ft pre-let distribution warehouse in Islip, and the 690,000 sq ft pre-let distribution warehouse in Warrington.
The portfolio is 99.5% occupied with an average unexpired lease term of of 12.9 years, and only 4.4% of rent due to expire in the next five years.
Andrew Jones, chief executive of LondonMetric, said: “The £362m of investment activity undertaken during the period has strengthened our portfolio further, whilst providing greater alignment to the growth of eCommerce through retail led distribution assets and the convenience of click and collect offered by our out of town retail portfolio. We set out to increase our development activity, and have achieved this with the acquisition of new opportunities in Warrington and Bedford. In addition, our asset management activity is improving the quality and quantum of our income whilst delivering capital returns well ahead of general market yield compression.”