LondonMetric Property has acquired, in separate transactions, three urban logistics warehouses for €41.2m (£35.4m), reflecting a blended NIY of 4.4% and a reversionary yield of 4.9%. The properties generate rent of circa €2m (£1.7m) p.a. with 83% of the income benefiting from RPI or CPI linked rent review. The warehouses have a WAULT of 15 years and comprise:
- 130,000ft² in Worthing acquired for €22.1m (£19m) through a sale and leaseback transaction withBowers & Wilkins, a global leader in high-performance audio technology. The occupier has agreed to a new 15-year lease with rent reviews linked to CPI. The building serves as its headquarters, main manufacturing centre and distribution warehouse;
- 50,000ft² in Uckfield acquired for €12m (£10.3m) and let to John Lewis for a further 15 years with RPI linked rent reviews. The building is located on the A22 / A272 junction and has a low site density of 32%; and
- 47,000ft² in Exeter acquired for €7.1m (£6.1m) and let to Jewson for a further 17 years. The building has strong reversionary and redevelopment potential and benefits from open market rent reviews with the next review in March 2022. It is located next to the M5 / A30 junction with the majority of the investment value supported by the residual land.
Andrew Jones, Chief Executive of LondonMetric, commented: “These urban logistics assets are in good locations and let on long leases with a certainty of income growth. We are continuing to find attractive opportunities for redeploying capital into our preferred sectors of urban logistics and grocery-led long income.”
