LondonMetric Property Plc has purchased a 4 acre site in Crawley to develop approximately 100,000ft² (9,290m²) of prime distribution space at a cost of approximately £20m (€26.4m), reflecting a yield on cost of approximately 6.3%.
Located on a prime South East urban logistics estate less than one mile from Gatwick Airport, the site has been purchased for £7.6m (€10m). Planning for the new scheme is expected by the end of this year with build completion anticipated in Q1 2018.
The scheme is expected to generate a rent of £1.3m/year (€1.7m/year).
Andrew Jones, chief executive of LondonMetric, commented: “There is a chronic lack of grade-A supply around Crawley together with significant occupier demand for modern distribution space in the area, and so we anticipate strong occupier interest.
“This latest acquisition increases our committed and pipeline developments and, once completed, will add to our growing portfolio of depot and regional distribution centres.”
LondonMetric was advised by Volume Developments Limited who will continue to act as its development partner.
