LondonMetric has announced the strategic acquisition of a state-of-the-art food distribution warehouse pre-let to Marks & Spencer for £74m, reflecting a net initial yield of 5.65%.
The 36,232 m² (390,000 sq ft) regional logistics facility, currently under development by Epta Development Corporation ("EDC") and its partner Stoford, will serve as a key component in M&S's food distribution network, featuring chilled, ambient and frozen storage capabilities. Located at Axis Works in Bristol's Avonmouth area—already home to other LondonMetric warehouse investments—the BREEAM Excellent-rated facility will complete in summer 2026, with LondonMetric receiving a 5.5% funding coupon during the development period.
Andrew Jones, Chief Executive of LondonMetric, commented: "This is a high-quality development let on a very long lease to one of the UK's strongest retailers. It will deliver income longevity, certainty and guaranteed growth. It further extends our relationship with M&S and adds another exceptional building to LondonMetric's portfolio."
Alex Freudmann, MD of M&S Food, added: "Modernising our supply chain is key to increasing the capacity in our network and will help us get ahead of the volume curve we are driving in M&S Food to meet our ambition of becoming a shopping list retailer. This new site will ensure that we're getting the right products to the right stores at the right time for our customers. It will also create a great working environment for our colleagues."
Chris Tsakumis, Principal at EDC, noted: "We are pleased to have invested in the site and our long-term UK investment strategy has reaped initial dividends with the announcement of our first occupier and investment sale."Advisory firms CBRE and Knight Frank represented EDC and Stoford in the transaction, while Lambert Smith Hampton acted for M&S.
- Andrew Jones, Chief Executive, LondonMetric Property Plc
- Alex Freudmann, Managing Director of Food, Marks & Spencer
- Chris Tsakumis, Principal, Epta Development Corporation
- LondonMetric Property Plc - UK REIT focused on logistics and retail property
- Marks & Spencer - UK retailer and tenant of the facility
- Epta Development Corporation - Developer of the warehouse
- Stoford - Development partner
- CBRE - Commercial property advisor to the developers
- Knight Frank - Commercial property advisor to the developers
- Lambert Smith Hampton - Commercial property advisor to M&S
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