LondonMetric to purchase and fund the development of a 48,681 m² retail distribution warehouse (UK)

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.
Source: Londonmetric