LondonMetric has acquired two urban logistics warehouses for €23.5 million with an initial yield of 4.9%. According to the company, the average lease is 13 years.
A report on Shares Magazine reads: “The company acquired a 48,000 square feet warehouse had been acquired in Avonmouth, let to Chep at a rent of £0.7m pa, subject to annual RPI linked reviews of between 2% to 4%.” In addition, “the company also acquired an 80,000 square feet warehouse in Cambridgeshire, let to Cambridge Commodities at a rent of £0.5m pa, subject to five yearly RPI linked reviews of between 2% to 4%.”
Andrew Jones, chief executive of LondonMetric, said: “These two modern warehouses are fully income generating, let for an average of 13 years to established occupiers and benefit from guaranteed rental growth.
“Following these acquisitions, our urban logistics portfolio is approximately £420 million and we will continue to take advantage of selective opportunities to grow our urban logistics portfolio above £500 million in the near term.”