LondonMetric buys two distribution warehouses
LondonMetric has acquired a regional distribution warehouse in Wakefield for £9.5m and a last mile distribution warehouse in Dartford for £6.3m, reflecting a blended net initial yield of 5.8% and a reversionary yield of 6.4%.
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The 120,000 sq ft Wakefield regional warehouse located on a premier distribution park at junction 31 of the M62 is let for a further 6.2 years to One Stop Stores, a wholly-owned subsidiary of Tesco. It serves the North of England and Scotland, which account for half of One Stop's 750 convenience store estate. The next open market rent review is in April 2018.
The 49,000 sq ft last mile warehouse in Dartford is on a prime distribution site 1.5 miles from junction 1A of the M25. It is let to Antalis, a major European paper and packaging distributor, on a new 10-year lease with a break clause and a rent review in year five.
Chief executive Andrew Jones said: "The urban logistics and convenience sectors continue to grow rapidly, as shopping patterns evolve and customers migrate towards internet and convenience shopping. The strong demand for well-located logistics assets is part of their ambition to meet increasing delivery demands."