LondonMetric Property has announced the acquisition of two logistics warehouses for €53.78m (£47.6m), reflecting a blended NIY of 5.0% rising to a minimum of 5.6% after five years. The average lease length is over 18 years.
At Ollerton in Nottinghamshire, LondonMetric has agreed to acquire a 364,000 ft² regional warehouse let to Clipper Logistics on a 20-year lease, at a rent of €5.69 (£5.04) psf, subject to annually payable RPI uplifts of between 2 - 4%. Founded in 1992 and listed in 2014, Clipper is amongst the UK’s leading providers of logistics solutions and e-fulfilment to the retail sector and employs nearly 4,000 people.
At Speke, LondonMetric has acquired a new 132,000 ft² regional logistics warehouse let to Gefco, on a new 15-year lease, at a rent of €5.84 (£5.17) psf subject to five yearly RPI linked reviews of between 2 - 4%. Gefco is a global logistics company with an annual turnover of over €4bn.
The unit is located nine miles from Liverpool city centre and close to J6 of the M62.
Andrew Jones, Chief Executive of LondonMetric, commented: “Following the recent disposals of two short let assets in Daventry and Bolton, we have quickly recycled some of the proceeds into two very long let logistics investments where we will benefit from guaranteed rental growth. E-commerce fulfilment and reverse logistics continue to be an increasingly important element of retail supply chains. Clipper is a market leader in the e-commerce sector and has strong relationships with a number of the UK’s leading retailers including John Lewis, ASOS and M&S, whilst Gefco is a top 10 logistics integrator in Europe.”