- LondonMetric said Monday that it had sold two M&S convenience stores for £10.7m, reflecting a net interest yield of 4.5%, and purchased a convenience development in Durham pre-let to Lidl for £13.3m, reflecting a yield on cost of 5.4%.

The two M&S stores that had been sold were purchased by LondonMetric in 2015 for £7.7m at a blended yield on cost of 5.9%, delivering an ungeared internal rate of return of 17% per annum.

The 58,000 sq ft convenience development in Durham had been acquired by a forward funding contract with Kier Property.

The convenience development is pre-let to Lidl for 20 years, at £13 psf, and would generate £0.8m of income per annum, 40% of which is expected to be RPI linked.

LondonMetric would benefit from a 5.5% funding coupon during construction, which is expected to be completed in the first half of 2019.

'The market for long, secure and growing income remains highly competitive, and the convenience sector continues to be well supported by shifting consumer shopping patterns,' said Andrew Jones, Chief Executive of LondonMetric

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