LondonMetric Property has acquired a logistics portfolio from the ACT Foundation for €62.5m (£55m). The purchase price reflects a day one blended NIY of 4.4% and a reversionary yield of 5.3%.
The portfolio consists of nine urban logistics assets totalling 340,000ft² and a retail store let to Wickes for a further 14 years. The assets are in established distribution locations and approximately 50% are located in London and the South East with a further 35% located in the Midlands. Two of the assets representing 20% of ERV are located in Park Royal and Greenford.
The Portfolio has a WAULT of nine years which is expected to rise to 12 years on anticipated regears. It generates income of c.€3m (£2.6m) per annum and is let to strong tenants including Ceva Logistics, DSV, Jewson, Vodafone and Wickes. The average rent is €7.8 (£6.90) psf which is significantly below ERV of €9.2 (£8.10) psf.
Andrew Jones, Chief Executive of LondonMetric, commented: “Following the recent disposal of six non-core distribution assets for €40.9m (£36m), we are pleased to have re-allocated the proceeds into a much stronger and better-located portfolio within such a quick timescale. The portfolio is fully income generating, offers good opportunities to capture strong income growth and increases our urban logistics portfolio to approximately €454.6m (£400m).”
LondonMetric was advised by JLL. The seller was advised by CBRE.
