LondonMetric Property Plc (“LondonMetric”) announces that it has exchanged contracts with Argos to extend the lease at its 656,000 sq ft distribution warehouse by a further 12 years. The new lease runs for 15 years, without break, and generates a rent of £4.1 million pa subject to five yearly inflation linked uplifts.
LondonMetric has also exchanged contracts with Oak Furniture Land to extend its 302,000 sq ft distribution warehouse in Swindon by 55,000 sq ft. Construction is expected to commence in May 2019 at a cost of £4 million, delivering a marginal yield on cost of 8%.
Following removal of the break, the lease runs for a further nine years, generating a rent of £1.9 million pa subject to five yearly inflation linked uplifts.
Mark Stirling, Asset Director of LondonMetric, commented:
“We continue to work closely with our occupiers to ensure that our real estate meets their future trading requirements and remains fit for purpose. These transactions demonstrate the strength of occupier contentment at our properties and their confidence in the outlook for their businesses.
“As well as providing greater certainty of income, these deals also give us better certainty of future income growth with all of our mega distribution warehouses now benefiting from contractual rental uplifts.”