1st Jul 2015 06:38
LONDON (Alliance News) - LondonMetric Property PLC on Wednesday said it has exchanged contracts to acquire and forward fund the development of a 524,000 square foot retail distribution centre in Wakefield for GBP39.4 million.
The warehouse, which LondonMetric has acquired from CDP Ltd, the development arm of the Marshall Construction Group, has been pre-let to Poundworld Retail Ltd on a 15-year lease at a rent of GBP2.5 million a year. The cost to LondonMetric reflects a net initial yield of 6.3%.
Construction of the site is due to start in the summer, with practical completion targeted for August 2016.
"The development is well located, will provide significant warehouse space, benefits from attractive contractual uplifts and is pre-let to an expanding retailer who we already enjoy a strong relationship with," said LondonMetric Chief Executive Andrew Jones.
By Sam Unsted; [email protected]; @SamUAtAlliance
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