2nd Feb 2022 09:23
(Alliance News) - British Land Co PLC said on Wednesday that it has acquired GBP157 million worth of sites in north London to support its urban logistics development pipeline.
The London-based property development and investment company said the acquisition was for three warehouses in Wembley, with completion expected by mid-February.
The three warehouses comprise over 245,000 square feet on a 12.5 acre site and are fully let to Amazon.com Inc, Euro Car Parts and the North London Waste Authority. The warehouses generate an annual income of GBP3.6 million with significant reversion, British Land Co explained.
This purchase follows other acquisitions across London by the company and brings the total gross development value of its urban logistics pipeline to over GBP1 billion. British Land added that the pipeline has a blended forecast internal rate of return from acquisition of 15%.
British Land said the acquisition is well located to provide an "excellent" medium term opportunity to deliver a multi-storey, urban logistics hub for central and west London where it explained supply is highly constrained.
Chief Executive Simon Carter said: "This acquisition is another example of the strong progress we are making against our strategy to address the chronic shortage of urban logistics space in central London via intensification and repurposing. Wembley is ideally located for vehicles coming into London and subsequently out for delivery with excellent access to affluent parts of the capital."
Shares in British Land were up 0.5% at 548.20 pence each on Wednesday morning in London.
By Heather Rydings; [email protected]
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