Londonmetric acquires urban logistics warehouse in Cardiff

Real estate investment trust Londonmetric has acquired an urban logistics warehouse in Cardiff for £11.1m, reflecting a blended net initial yield of 5.0%.

Londonmetric stated on Thursday that the 119,000 square foot warehouse was let to Global Life Sciences Solutions, trading as Cytiva, on a new ten-year lease with retail price index-linked rent reviews of between 1% and 3%.

The FTSE 250-listed firm added that the property generates a rent of £600,000 per year with contractual rent reviews expected to increase the purchase net initial yield to 5.8% after five years.

Chief executive Andrew Jones said: "We continue to recycle capital from our disposal activity into high quality assets that will enhance our urban logistics portfolio. This property is let to a highly reputable occupier, offers attractive income growth prospects and has further asset management potential."

As of 0840 BST, Londonmetric shares were down 2.41% at 258.80p.