LondonMetric in £116m logistics purchase

LondonMetric Property said it had bought 14 urban and regional logistic warehouses for £116.6m from Cabot Properties.

The purchase price reflects a day one yield on cost of 6.1% and a reversionary yield of 6.6%, the company said.

In a statement, LondonMetric said 11 of the 14 buildings are "last mile"/urban logistic warehouses and more than half are located in the South East and Midlands.

The portfolio has a weighted average unexpired least term of 5.6 years and is let at a low average rent of £5.50 per square foots. More than 60% of the £7.2m income is from retailers and third party logistics operators including DHL, Howdens, Unipart and Royal Mail.

This acquisition increases LondonMetric's distribution weighting to 69% and loan-to-value to 37%, the company said.