LondonMetric Property has acquired two logistics warehouses for £135.6m in separate transactions, reflecting a blended net initial yield of 4.2% and a reversionary yield of 4.8%.
The properties generate a rent of £6.0m a year with 100% of the income benefiting from RPI linked rent reviews and have a WAULT of 22 years.
The first property is a 700,000 sq ft logistics facility, acquired for £97.0m at a NIY of 4.0% and let for another 23 years at a rent of £4.1m a year, reflecting a reversionary £6.00 per sq ft, with the next review in three years. The highly automated warehouse sits adjacent to a key UK motorway junction on a premier logistics hub and has further development potential of up to 180,000 sq ft.
The second property is a 296,000 sq ft development and was acquired for £38.6m at a NIY of 4.5%. It is pre-let to a rapidly expanding e-commerce company, on a 20 year lease at a rent of £1.9 million per annum, equating to £6.25 per sq ft. The warehouse is located at Port One Logistics Park, Ipswich, and will be used by the occupier to import and distribute products. Development completes in spring 2022.
Both buildings are certified BREEAM Very Good.
Andrew Jones, chief executive, said: “These are excellent buildings, in strong locations and offer attractive opportunities to capture guaranteed rental reversions.
“These investments quickly follow on from the recent sale of our Primark mega logistics warehouse where the delayed completion on that transaction means that we will continue to collect the income until February next year.”
LMP : LondonMetric makes £135m double buy