17th Mar 2016 07:35
LONDON (Alliance News) - LondonMetric Property PLC Thursday said it has acquired three distribution warehouses in the UK for a total of GBP21.8 million.
The warehouses cover a combined floor space of 212,600 square feet are and located in Castle Donington, Royston and Hemel Hempstead. The warehouses are currently let to toy retailer Hamleys, Howdens and Goodrich and are generating annual rent of GBP1.5 million.
"These acquisitions reflect our increasing investment into smaller logistic depots serving major conurbations, where there is growing demand for warehouse accommodation that can satisfy customers' next day delivery requirements," LondonMetric said.
"This particular segment of the distribution sector is experiencing strong demand/supply tension and delivering organic rental growth. We continue to see other opportunities, particularly off market, and will grow our investment within this area," the company added.
The warehouses were purchased from private vendors and will be funded from the company's existing resources.
Separately, LondonMetric's joint venture with Universities Superannuation Scheme Ltd, the Metric Income Plus Ltd Partnership, has sold its Wickes out of town retail unit in Nottingham for GBP5.2 million. The property was purchased for GBP4.5 million November 2012.
By Joshua Warner; [email protected]; @JoshAlliance
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