25th Sep 2024 10:03
(Alliance News) - LondonMetric Property PLC on Wednesday said it is buying six single let urban logistics properties from a FTSE 100 pension fund.
The London-based real estate investor said the purchase price of GBP78.0 million reflects a blended net initial yield of 5.8% which rises to 6.9% over the next two years.
Chief Executive Officer Andrew Jones said: "This was a very rare opportunity to acquire, off market, a high quality portfolio which is immediately earnings accretive.
"The well located, mission critical assets, offer an attractive mix of near term income growth and value-enhancing asset management opportunities. Logistics remains our strongest conviction thematic and now accounts for over 45% of our total portfolio."
The portfolio generates income of GBP4.8 million per year with an average rent of GBP9.2 per square foot. LondonMetric expects this to rise by 21% to GBP5.8 million and GBP11.10 per square foot over the next two years.
Separately, the company announced it sold a further office asset in Edinburgh for GBP6.0 million.
LondonMetric shares were 0.2% higher at 206.00 pence each on Wednesday morning in London.
By Tom Budszus, Alliance News slot editor
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