LondonMetric acquires two regional logistics assets for €26.2m (GB)

LondonMetric acquires two regional logistics assets for €26.2m (GB)

LondonMetric has acquired two urban logistics warehouses for €26.2m (£23.5m), reflecting a blended NIY of 4.9% and rising to 5.6% after five years. The average lease length is 13 years. 

 

The first property located in Avonmouth totals 48,000ft² and is let to CHEP at a rent of €0.78 (£0.7m) pa, subject to annual RPI linked reviews of between 2 - 4%. CHEP is a global leader in pallet supplies and distribution and is part of the Brambles Group. The warehouse was built in 2012 and has a very low site density of 14%, providing future optionality for further development. It is located on Central Park, the South West’s largest distribution park.

 

The second asset located in Cambridgeshire compromises 80,000ft² of GLA and is let to Cambridge Commodities at a rent of €0.56m (£0.5m) pa, subject to five yearly RPI linked reviews of between 2 - 4%. Cambridge Commodities provides nutritional ingredients to the sports, health, animal and food industries. The newly built warehouse is located on an established business park occupied by tech and R&D focused companies.

 

Andrew Jones, Chief Executive of LondonMetric, commented: “These two modern warehouses are fully income generating, let for an average of 13 years to established occupiers and benefit from guaranteed rental growth. Following these acquisitions, our urban logistics portfolio is approximately €468.7m (£420m) and we will continue to take advantage of selective opportunities to grow our urban logistics portfolio above €558m (£500m) in the near term.”

 

LondonMetric was advised by Knight Frank at Avonmouth and by FSP at Cambridgeshire.

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