In a major industry shake-up, LondonMetric Property Plc has successfully completed a merger with LXi REIT plc, marking the emergence of the UK’s largest triple net lease Real Estate Investment Trust (REIT). This strategic amalgamation, effective from 5 March 2024, heralds the launch of an entity boasting a highly efficient, internally managed structure coupled with a robust £6.2 billion portfolio.

The newly formed giant is poised to dominate structurally supported sectors including logistics, healthcare, convenience, and entertainment, underpinned by a portfolio of mission-critical assets. With a sector-leading Weighted Average Unexpired Lease Term (WAULT) of 19 years and a 99% occupancy rate, the merger promises enduring income and potential for growth through contractual rental uplifts and market reviews.

Additionally, LondonMetric announced the acquisition of a logistics development at Radway Green, Crewe, for £13 million. This off-market transaction covers a 213,000 sq ft development on a 20-acre site, expected to yield significant returns upon full letting.

The company also reported the disposal of non-core assets amounting to £184 million in the current financial year, further streamlining its portfolio towards high-growth sectors.

Andrew Jones, Chief Executive of LondonMetric, expressed enthusiasm for the merger’s transformative potential, emphasizing improved liquidity, cost savings, and access to significant new opportunities that are expected to drive accelerated earnings and dividend growth.

The merger also welcomed Nick Leslau as a Non-Executive Director, enriching the board with his extensive real estate expertise and track record in strategic asset management.

LondonMetric’s strategic moves, including the merger and focused acquisitions, underscore its commitment to leveraging opportunities within the logistics sector and beyond, setting a strong course for sustainable growth and shareholder value enhancement.