LondonMetric Properties (LMP) has bought a portfolio of 10 out-of-town Odeon multiplex cinemas for £80.6m. They are being sold and leased back by the cinema operator before a debt package expires in July next year. The new lease will last for just under 25 years, with the rent starting at £5.9m - implying a 7.3 per cent initial yield. Crucially, the rent is due to grow in line with inflation as defined by the retail price index (within a bracket of 1-5 per cent).
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This is the company's second acquisition in a week. On Monday it bought a Travis Perkins distribution centre in Brackmills, Northampton, for £9m, giving a rental yield of 8.8 per cent.
