LondonMetric buys two logistics assets for £28.8m
Property company Londonmetric Property has acquired two urban logistics properties for £28.8m in separate transactions, reflecting an anticipated blended yield of 4.5% and a reversionary yield of 5.0%.
Londonmetric said on Wednesday that it had purchased a 125,000 square foot urban logistics forward fund development in Leicester that consists of two units and was expected to complete at the start of 2023.
The largest unit, totalling 90,000 square feet, was pre-let to EM Pharma on a new 15-year lease at a rent of £7.25 per square foot, while the smaller 35,000 square foot unit will be developed speculatively and was expected to deliver a yield on cost of roughly 5%.
Londonmetric also stated it had snapped up a nine-acre site in Droitwich that will be used for vehicle storage and will be let to Amazon for a further five years with CPI-linked rent reviews. The site also has planning consent for a 200,000-square-foot distribution warehouse.
The FTSE 250-listed firm expects the properties to generate annual rents of £1.4m.
Chief executive Andrew Jones said: "We are continuing to allocate capital into the strongest geographies within the distribution sector, where we can benefit from attractive entry yields and structurally supported occupier demand to capture superior rental growth."
As of 0945 BST, Londonmetric shares were down 1.39% at 270.20p.