8th Aug 2019 10:09
(Alliance News) - LondonMetric Property PLC said Thursday it has acquired a distribution warehouse in Bognor Regis, West Sussex, for GBP17.8 million, reflecting a net initial yield of 9.0%.
The warehouse is 298,600 square feet, and is let for another two years at a rent of GBP1.7 million per annum to NYSE-listed education-focused publishing firm John Wiley & Sons Inc.
Alongside the warehouse acquisition, Wiley signed a 15-year revisionary lease with the FTSE 250-listed property firm starting in 2021, at a rent of GBP20 million per annum, with break options in 2026 and 2031.
LondonMetric will also fund improvement works for the warehouse totalling GBP1.4 million, expected to deliver an initial yield on cost of 8.6%, rising to 9.6% in 2021 on the start of the new lease.
"This acquisition offers a highly attractive yield and the opportunity to leverage our occupier relationship to deliver significantly greater certainty of income and income growth, as well as further improving the granularity of our income. It is a strong macro location with high intrinsic land values providing future optionality," said Chief Executive Andrew Jones.
Shares in LondonMetric Property were up 0.5% at 199.30 pence on Thursday.
Related Shares:
LondonMetric