LondonMetric Property has acquired a Next Distribution warehouse for £29m, reflecting a net initial yield of 6.3%. The off market acquisition is from a private property company and will be funded from the Company’s existing resources.
The warehouse is located two miles north west of Junction 38 of the A1(M) in South Elmsall, Doncaster near to LondonMetric’s Superdrug Distribution Centre. It forms part of Next’s ‘logistics hub’ in the area, with three further Next owner-occupied units on adjacent sites and a conveyor link bridge to one of these units.
The 330,300 sq ft asset was purpose built for Next in 2005 and incorporates 22,000 sq ft of office space and has additional mezzanine floors, which increases the internal area to 725,000 sq ft. The site area is 19 acres and the site cover is 40%. The unit is let at a rent of £1.9m per annum with a further 2.5% pa compounded fixed uplift in April 2019, and has an unexpired lease term of 9 years.
LMP buys Next warehouse