LondonMetric Property has unconditionally acquired the 161874 m² (40-acre) Bedford Link site from the local authority. The purchase price was undisclosed.
The site has planning consent for up to 670,000 ft² of logistics space and all other conditions relating to the purchase have now been satisfied.
Bedford Link is situated on the A421, close to junction 13 of the M1. It is next to Marsh Leys Business Park, a well-established distribution location where LondonMetric owns an Argos warehouse and other occupiers include Sainsbury’s and Asda.
LondonMetric is engaged in active occupier discussions to develop up to four regional distribution warehouses at a total anticipated cost of €67.6m (£60m) delivering a yield of c.7%.
Graftongate has been appointed as Development Manager with enabling works due to commence shortly, and construction anticipated to start in summer 2018.
Andrew Jones, Chief Executive of LondonMetric, commented:“We are pleased to be in a position to commence infrastructure works, reinvesting proceeds from our recent disposals. We are still unlocking value within this area of the market and will continue to target yields on cost materially above current investment yields. The supply of Grade “A” distribution space remains highly constrained, which is reflected in the quality of our ongoing discussions with potential occupiers.”
LondonMetric was advised by DTRE and Graftongate.
