LondonMetric Property Plc announces that it has exchanged conditional contracts with CDP Ltd, the development arm of the Marshall Construction Group, to purchase and forward fund the development of a new 524,000 ft² (approx. 48,681 m²) retail distribution centre in Wakefield for £39.4 mln (approx. €55.6 mln), reflecting a yield on cost to LondonMetric of 6.3%.
The warehouse has been pre-let to Poundworld Retail Ltd on a 15 year lease at a rent of £2.5 mln (approx. €3.5 mln) pa, equating to £4.85 (approx. €6.8) psf, subject to 5 yearly compounded RPI rent reviews to a minimum of 2.5% p.a. and a maximum of 5.0% pa.
Construction is due to commence later this summer with practical completion targeted for Autumn 2016. Funding payments will attract a rolled up coupon of 6.50% pa.
The highly prominent 30 acre site is located near J.31 of the M62 in a well-established logistics hub with adjoining occupiers including Asda, DHL, HSBC, Royal Mail and TK Maxx.