LondonMetric Property Plc has exchanged on the acquisition of the Travis Perkins Distribution Centre in Brackmills, Northampton for a purchase price is £9.0 million (approx. €10.8 million) (net of acquisition costs), reflecting a net initial yield of 8.8%. The acquisition will be funded from existing resources.
The 170,300 ft² (approx. 15,821 m²) distribution center is strategically located on the Brackmills Industrial Estate with extensive frontage to the A45 dual carriageway. Travis Perkins occupies the unit until March 2014. LondonMetric is already in detailed discussions with Travis Perkins about extending their occupation. Other occupiers on the estate include John Lewis, Wickes, White Company, DHL, Asda and Howdens.
Following this acquisition, the LondonMetric distribution portfolio comprises nine distribution centers with a combined value of £212.8 million (approx. €255 million), representing 19% of the enlarged Group’s portfolio. The weighted average unexpired lease term across the distribution portfolio is 13.2 years (12.6 years to first break) and the portfolio is 99.4% occupied. Fixed rental uplifts across the distribution portfolio represent 42% of total distribution rental income and 11.3% of the Group’s contracted rental income.
Separately, LondonMetric has completed with Travis Perkins the regear of three Wickes leases at Barnsley (25,900 ft²), Chatham (24,900 ft²) and Oxford (28,200 ft²) on behalf of its MIPP joint venture with USS. It has extended the average unexpired lease term on these properties from 7.3 years to 21.7 years. The properties were acquired recently as part of a larger portfolio acquisition off an initial yield of 7.2%.
Source: LondonMetric
