LondonMetric Property Plc has acquired three urban logistics warehouses in Croydon, Dunstable and Warrington for £18.7 million, reflecting a blended NIY of 4.3% and a reversionary yield of 5.3%.
LondonMetric said the logistics warehouses have been acquired in separate transactions and have a WAULT of five years.
In Croydon, a highly reversionary 28,000 sq ft urban warehouse has been acquired for £5.3 million which is let to HTC Group for a further four years at a low rent of £9.00 psf. The building is situated in a prime South London industrial location.
In Dunstable, a highly reversionary 19,000 sq ft urban warehouse has been acquired for £3.0 million. It is let to Deralam Laminates for a further four years at a low rent of £7.00 psf. The high specification building is situated in an established industrial location within close proximity to J11a of the M1. The next rent review is due in February 2022.
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In Warrington, 73,000 sq ft of warehousing has been acquired for £10.4 million. It is let predominantly to IKEA with a WAULT of six years at an average rent of £6.60 psf. The high specification and recently refurbished building is well located, situated less than a mile away from J8 of the M62 and with nearby retail and residential.
“Through high quality acquisitions, we continue to grow our urban logistics portfolio which now totals £1.0 billion. These purchases are very well located with high residual values, offering attractive yields and strong rental growth prospects through open market reviews and/or re-let opportunities,” said Andrew Jones, Chief Executive of LondonMetric.
