LondonMetric Property has acquired eight ‘last mile’ distribution warehouses for £39.9 million at a blended yield of 6.2% and with a WAULT of 9.0 years.
Six of the distribution warehouses have been acquired from Helical for £26.0 million at a NIY of 6.5%. The 382,000 sq ft of warehouses are in established distribution locations and benefit from strong motorway connectivity and severely restricted levels of supply. The portfolio has a WAULT of 7.0 years and is let at a low average rent of £4.71 psf (ERV of £5.32 psf).
LondonMetric has also exchanged on a 53,000 sq ft distribution development in Crawley for £10.7 million at a yield on cost of 5.2%. The development has been pre-let to retailer Barker & Stonehouse for 15 years at a rent of £10.77 psf (ERV of £12.00 psf). Practical completion is expected in March 2017.
Furthermore, it has acquired a 30,000 sq ft distribution warehouse in Bicester for £3.2 million at a NIY of 5.9%. The warehouse is let to DPD Group with a WAULT of 9.5 years.
Chief executive Andrew Jones said: “These are important acquisitions as we continue to build critical mass within the ‘last mile’ distribution sector, which now extends to 19 assets across 1.2 million sq ft.”
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