LondonMetric Property (LondonMetric) has acquired two logistics warehouses for GBP135.6 million in separate transactions, reflecting a blended NIY of 4.2 per cent and a reversionary yield of 4.8 per cent.
The properties generate a rent of GBP6.0 million pa with 100 per cent of the income benefiting from RPI linked rent reviews. The warehouses have a WAULT of 22 years and comprise:
• c700,000 sq ft, acquired for GBP97.0 million at a NIY of 4.0 per cent and let to a high quality occupier for another 23 years at a rent of GBP4.1 million p.a., reflecting a reversionary GBP6.00 psf, with the next review in three years. The highly automated warehouse sits adjacent to a key UK motorway junction on a premier logistics hub and has further development potential of up to 180,000 sq ft; and
• 296,000 sq ft, acquired for GBP38.6 million at a NIY of 4.5 per cent and pre-let to a rapidly expanding e-commerce company, on a 20 year lease at a rent of GBP1.9 million pa, equating to GBP6.25 psf. The warehouse is located at Port One Logistics Park, Ipswich, and will be used by the occupier to import and distribute products. Development completes in spring 2022.
The buildings are highly specified and certified BREEAM Very Good.
Completion of the c700,000 sq ft acquisition is expected to occur in January 2022.
Andrew Jones, Chief Executive of LondonMetric, says: “These are excellent buildings, in strong locations and offer attractive opportunities to capture guaranteed rental reversions.
“These investments quickly follow on from the recent sale of our Primark mega logistics warehouse where the delayed completion on that transaction means that we will continue to collect the income until February next year.”
