LondonMetric Property has announced the acquisition of five urban logistics warehouses and the disposal of a regional warehouse in Doncaster.
The five logistics units have been sold for a combined total of €29.3m (£25.6m), reflecting a blended NIY of 5.0% which rises to 5.6% over the next five years. The assets have an average lease length of 16 years, with 67% of the income subject to contractual rental uplifts. They are well located in Leyton, Weybridge, Peterborough, Cheltenham and Haverhill with occupiers including Clipper Logistics, FedEx and Tesla.
In Doncaster, a 290,000 ft² regional warehouse has been sold for €17.1m (£15m) reflecting a NIY of 6.2%. The building is let to Superdrug for a further 8 years with 3 years to break. The property was acquired by LondonMetric in 2014 for €14.9m (£13m), at a NIY of 7.3% and has generated an ungeared IRR of 10% pa.
Andrew Jones, Chief Executive of LondonMetric, commented: "The investment market for logistics assets continues to enjoy strong structural support. We have therefore decided to monetise one of our oldest and shortest let regional assets to allow us to focus on growing our urban logistics portfolio, which offers greater certainty of occupation, income and future valuation growth. These new investments meet our objective of owning long let assets in strong locations that offer excellent potential for income growth."