LondonMetric has acquired two warehouses in Milton Keynes for £31.2 million, reflecting a blended net initial yield of 4.4% and a reversionary yield of 5.0%.
The warehouses in Milton Keynes have a WAULT of 22 years and benefit from contractual rental uplifts.
The first property is a 66,000 sq ft unit, which is let to TalkTalk as a data centre and has been acquired for £23.9 million. It is let for a further 26 years term certain and benefits from annual RPI linked rent reviews of between 2-4%. The property is strategically located one mile from the centre of Milton Keynes. It exhibits a very low site density of 29% and offers excellent data and power
connectivity. The occupier has invested significantly into the building.
The second property is a 42,000 sq ft urban logistics warehouse, which has been acquired for £7.3 million. It is let on a new 10 year lease and benefits from annual rent reviews at the higher of OMV or RPI between 2% to 5%. The building is located three miles from the centre of Milton Keynes and has a very low site density of 27%.
“Following our recently announced disposal of long let NNN retail assets, we are pleased to have quickly redeployed the proceeds into two high quality acquisitions let on very long leases with guaranteed rental growth. These assets are very well located in attractive urban geographies with strong infrastructure characteristics and provide high occupier contentment,” said Andrew Jones, Chief Executive of LondonMetric.