LondonMetric Property has announced that it has acquired three distribution warehouses for £21.8m, totalling 212,600 sq ft and reflecting a net initial yield (“NIY”) of 6.6%, which contractually rises to 6.9% within two years.
The warehouses are located in Castle Donington, Royston and Hemel Hempstead and are let to toy retailer Hamleys, Howdens and Goodrich respectively for a total rent of £1.5m pa and a weighted average unexpired lease term of 12.4 years.
The acquisitions are from private vendors and will be funded from the Company’s existing resources.
Separately, LondonMetric’s joint venture with Universities Superannuation Scheme Ltd, the Metric Income Plus Limited Partnership, has sold its Wickes out of town retail unit in Nottingham for £5.2m; NIY 6.4%. The property was acquired for GBP4.5 million in November 2012, reflecting a yield on cost of 7.4%.
LMP : LondonMetric Property buys three distribution warehouses