London & Stamford Property Plc announces that it has exchanged contracts to purchase a distribution unit in Harlow for £22.9 million (excl. costs) (approx. 26.3 million), reflecting a property yield of 7.5%.
The property comprises a 273,115-ft² (approx. 25,000-m²) distribution warehouse located in Harlow. The warehouse is leased to Tesco Stores Ltd. The unexpired lease term for a further 12.5 years to Tesco Stores Ltd is guaranteed by Tesco PLC. Tesco uses the facility to distribute to its stores in London and the South East.
The acquisition will be added to the existing South Eastern distribution assets held in a joint venture with Green Park Investments. It is anticipated that once leverage is applied the cash yield will be 12.07%. London & Stamford's equity commitment is expected to be £4.78 million.
Raymond Mould, Chairman of London & Stamford Property, said: "This acquisition sits very well with London & Stamford's existing distribution investment portfolio. It is a high quality asset offering an excellent cash yield combined with a secure tenant and in a prime location.
Source: London & Stamford