LondonMetric has bought an urban logistics warehouse in Luton from Marcol Industrial Investments for £15.5 million.
The 168,000 sq ft property is located on Luton Enterprise Park, close to Luton town centre and J11A of the M1. It is let to two occupiers with a WAULT of three years. The rent of £0.7 million p.a. equates to a very low £4.20 psf, reflecting a NIY of 4.3% which rises to 5.9% based on ERV.
The property offers significant potential for redevelopment, which LondonMetric will look to progress on expiry of leases.
Andrew Jones, Chief Executive of LondonMetric, commented:“We continue to grow our urban logistics portfolio with quality acquisitions and this latest transaction is an excellent covered land opportunity in a very strong location offering significant rental reversion as well as attractive future redevelopment potential.”
