Property investor LondonMetric has picked up a portfolio of Waitrose stores and an Ocado logistics site for a total of £73m.
The publicly listed group purchased a portfolio of five food stores let to Waitrose in a £62m sale and leaseback agreement.
The stores – in Keynsham, Malmesbury, Paddock Wood, Towcester and Yateley – have been let to the supermarket on new 20-year leases, with inflation-linked rent reviews. Ranging in size from 27,000 sq ft up to 43,000 sq ft, the portfolio also operates as online fulfilment centres for Waitrose and John Lewis.
Waitrose would continue to trade from the stores as normal with no change from a customer or staff perspective, LondonMetric said.
The property investor also purchased a 32,000 sq ft urban logistics unit in Walthamstow let to Ocado for £10.9m.
Together, the assets generated a total rent of £3.3m a year, the group added.
“We live in a world of continuing disruption, which is exposing both winning and losing strategies, almost on a daily basis,” said LondonMetric CEO Andrew Jones.
“These are high-quality and well-located assets in structurally supported sectors, let to strong occupiers that offer secure triple net income and the certainty of income growth. These investments will increase our exposure further to the winning sectors and occupiers, with Waitrose now a top 10 occupier and Ocado a new addition to our customer base.
“In a macro environment characterised by zero interest rates, well-let properties are becoming increasingly sought after.”
LondonMetric was advised by Bruce Gillingham Pollard on the sale and leaseback portfolio and by Stonehill Partners on Walthamstow.