LondonMetric Property has forward-funded the acquisition of a pre-let M&S logistics warehouse in Bristol for £74.0m, reflecting a NIY of 5.65%.
The 390,000 sq ft regional logistics warehouse is pre-let to M&S on a 20-year lease with five yearly upward only rent reviews linked to CPI.
The highly specified warehouse is being developed by Epta Development Corporation and its development partner, Stoford. It will be a key facility for M&S’s food distribution business and incorporates chilled, ambient and frozen product. The unit is located at Axis Works, a prime logistics location in Bristol, adjacent to other LondonMetric warehouse investments in Avonmouth.
The BREEAM Excellent-rated building is expected to complete in summer 2026 and LondonMetric will receive a funding coupon of 5.5% during the development.
Andrew Jones, chief executive of LondonMetric, commented: “This is a high quality development let on a very long lease to one of the UK’s strongest retailers. It will deliver income longevity, certainty and guaranteed growth. It further extends our relationship with M&S and adds another exceptional building to LondonMetric’s portfolio.”
