20th Aug 2018 08:12
LONDON (Alliance News) - FTSE 250-listed LondonMetric Property PLC said on Monday it has acquired two logistics warehouses for GBP23.5 million, reflecting a blended net initial yield of 4.9%, expected to rise to 5.6% over five years.
One warehouse is 48,000 square feet, and currently let to pallet supplier CHEP at a rent of GBP700,000 per annum. The site is in Central Park in Avonmouth, Bristol.
The second property is an 80,000 square feet warehouse in Cambridgeshire, and is currently let to nutritional ingredient wholesaler Cambridge Commodities at a rent of GBP500,000 per annum.
The average lease length for both properties is 13 years.
"These two modern warehouses are fully income generating, let for an average of 13 years to established occupiers and benefit from guaranteed rental growth. Following these acquisitions, our urban logistics portfolio is approximately GBP420 million and we will continue to take advantage of selective opportunities to grow our urban logistics portfolio above GBP500 million in the near term," said Chief Executive Andrew Jones.
LondonMetric shares were up 0.2% at 183.90 pence early Monday.
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