LondonMetric Property has acquired a long let cold storage and logistics warehouse development for £53.4m.
The 300,000 sq ft building is pre-let on a 25 year lease to AM FRESH GROUP, an international agri-tech company that supplies the majority of UK supermarkets with a range of items including fruits, plant-based fresh goods and flowers. The rent of £2.0m per annum equates to £6.70 per sq ft and is subject to five yearly CPI+1% linked reviews. The acquisition yield was 3.7%, which is expected to rise to 4.3% at the next rent review.
The development is located at Alconbury Weald, Huntingdon, on the A1(M), with the nearby A14 interchange providing a direct link to the Felixstowe port. It will be a highly specified cold storage, production and logistics warehouse used to supply fresh fruit to food retailers and wholesalers across the UK. The property will be fitted out with market leading robotics and automation and include an innovation centre and incubator for agri-tech R&D.
LondonMetric said the building, which will be certified BREEAM Very Good, is expected to complete in December 2022. LondonMetric will receive a funding coupon of 3.7% during the development.
Andrew Jones, chief executive, said: “This is a high quality development benefitting from a very long lease to a market leader in fresh produce and adding an exceptional building to our portfolio. We are excited about working in partnership with AM FRESH as we use our expertise to help deliver their new warehouse and build a long term relationship.”
LMP : LondonMetric buys cold storage logistics scheme at 3.7% yield