LondonMetric Property reports strong occupational activity in the logistics sector and the capture of significant rental growth across its portfolio.
The company has undertaken 62 lettings, lease regears and rent reviews since 30 September 2022, adding £2.4m of annualised rent. This comprised:
- Lettings and lease regears on 24 assets, signed with a WAULT of 10 years and adding £1.9m per annum of rent; and
- Rent reviews on 38 assets adding £0.5m per annum of rent.
Rent reviews and regears delivered an average uplift of 21% against previous passing rent on a five yearly equivalent basis, with average uplifts of 33% on logistics.
Key deals included:
- The regear at a 290,000 sq ft regional logistics warehouse in Sheffield, where the WAULT was extended to 10 years and the rent increased by £0.8m, a 50% uplift;
- A regear and open market review at a 90,000 sq ft urban logistics unit in Coventry, where the WAULT increased to 10 years and the rent increased by £0.2m, a 39% uplift;
- An open market review at a 47,000 sq ft trade unit in Exeter, adding £0.1m, a 36% uplift;
- A regear at a 46,000 sq ft urban logistics warehouse in Crawley, where the WAULT was extended to five years and the rent increased by £0.2m, a 35% uplift;
- A regear at a 40,000 sq ft retail store in Evesham, where the WAULT doubled to 16 years; and
- The letting of a vacant 26,000 sq ft urban logistics warehouse in Crawley with a 10 year term, adding £0.3m of rent, a 19% uplift against the previous passing rent.
Andrew Jones, chief executive, commented: “We continue to see strong occupational activity across our portfolio from a very wide range of industries. This is allowing us to capture significant rental increases as well as negotiate longer lease lengths on shorter dated income. Over the next six to 12 months we expect to settle a high number of rent reviews and we are well on track to capturing the £8m of logistics rental reversion that we identified at the time of our last results.”
LMP : LondonMetric reports strong logistics demand