LONDONMETRIC PROPERTY PLC
LONDONMETRIC ACQUIRES A PORTFOLIO OF
URBAN LOGISTICS WAREHOUSES FOR £55 MILLION
LondonMetric Property Plc (“LondonMetric”) announces the acquisition of ten single let properties for £55.0 million from the ACT Foundation (“Portfolio”). The purchase price reflects a day one blended NIY of 4.4% and a reversionary yield of 5.3%.
The Portfolio consists of nine urban logistics assets totalling 340,000 sq ft and a retail store let to Wickes for a further 14 years. The assets are in established distribution locations and approximately 50% are located in London and the South East with a further 35% located in the Midlands. Two of the assets representing 20% of ERV are located in Park Royal and Greenford.
The Portfolio has a WAULT of nine years which is expected to rise to 12 years on anticipated regears. The Portfolio generates income of £2.6 million per annum and is let to strong tenants including Ceva Logistics, DSV, Jewson, Vodafone and Wickes. The average rent is £6.90 psf which is significantly below ERV of £8.10 psf.
Andrew Jones, Chief Executive of LondonMetric, commented:
“Following the recent disposal of six non core distribution assets for £36 million, we are pleased to have re-allocated the proceeds into a much stronger and better located portfolio within such a quick timescale.
“The portfolio is fully income generating, offers good opportunities to capture strong income growth and increases our urban logistics portfolio to approximately £400 million.”
LondonMetric was advised by JLL. The seller was advised by CBRE.
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