LondonMetric Property buys urban logistics portfolio – LondonMetric Property has announced the acquisition of ten single let, mainly urban logistics properties for GBP55.0 million from the ACT Foundation. The purchase price reflects a blended net initial yield of 4.4% and a reversionary yield of 5.3%.
The portfolio consists of nine urban logistics assets totalling 340,000 sq ft and a retail store let to Wickes for a further 14 years. The assets are in established distribution locations and approximately 50% are located in London and the South East with a further 35% located in the Midlands. Two of the assets representing 20% of ERV are located in Park Royal and Greenford.
The portfolio has a WAULT of nine years which is expected to rise to 12 years on anticipated regears. The portfolio generates income of GBP2.6 million per annum and is let to strong tenants including Ceva Logistics, DSV, Jewson, Vodafone and Wickes. The average rent is GBP6.90 psf which is significantly below ERV of GBP8.10 psf.
Andrew Jones, chief executive of LondonMetric, commented: “Following the recent disposal of six non core distribution assets for GBP36 million, we are pleased to have re-allocated the proceeds into a much stronger and better located portfolio within such a quick timescale. The portfolio is fully income generating, offers good opportunities to capture strong income growth and increases our urban logistics portfolio to approximately GBP400 million.”
LondonMetric was advised by JLL. The seller was advised by CBRE.
LMP : LondonMetric Property buys urban logistics portfolio