LondonMetric buys two M&S retail assets for £25m

LondonMetric Property has acquired two Marks & Spencer stores in Newport, Isle of Wight and Kendal, Lancashire for £24.6m.

The two edge of town centre properties are let to M&S at a total rent of £1.4m a year, subject to annual rental uplifts of 2% and the existing lease runs for a further 10 years.

The company said the acquisitions, which reflect a net initial yield of 5.45%, will complement its existing convenience portfolio which now includes eight M&S stores and four Aldi stores and is valued at £85m.

Chief executive Andrew Jones said: "Consumer shopping patterns continue to evolve and we remain convinced that logistics and convenience retail are on-going beneficiaries of these changes as retailers look to invest further in their click and collect distribution infrastructure.

"We have very good relationships with M&S and this is a rare opportunity to acquire two strongly performing stores."