LondonMetric Property Plc announces that it has exchanged on the acquisition of the 38,090 m² Eddie Stobart distribution facility in Dagenham from Meaalofa Developments Holdings Limited (a JV between Sheikh Holdings and Landid, funded by Longbow) for £56.5 mln (approx. €73.7 mln), reflecting a 5.10% NIY. The acquisition will be funded from existing resources.
The 28 acre (approx. 11.33 hectares) site is let in its entirety to Eddie Stobart Limited at a rent of £3.0 mln (approx. €3.9 mln) pa for 17 years from August 2014, with annual fixed uplifts of 2.0% pa.
Currently consisting of five units, the site cover is just 34%. The facility is uniquely positioned, benefiting from exceptionally strong transport links serving London and the rest of the South East, with road (A13) and direct rail access, as well as being ideally located for the major ports of Felixstowe, London Gateway and Tilbury.
LondonMetric and Eddie Stobart are working up plans to substantially redevelop and reconfigure the site, including the replacement of two existing units with a new 10,684 m² extension to accommodate the significant growth in business being generated.
Andrew Jones, Chief Executive of LondonMetric, commented: “This is an exceptional strategic distribution asset in London with excellent asset management and development opportunities. Assets like this rarely become available, further demonstrating our ability to source attractive off-market opportunities within our core sector. We are excited at the prospect of working with Eddie Stobart to maximise the site’s potential and share in its future growth, underpinning our strategy of working with tenants to deliver high occupier contentment.”
Source: London Metric