LondonMetric spends another £29m in bumper week
LondonMetric has spent another £29m on two urban logistics properties.
The deals, which reflect yields of 4.5% and a reversionary yield of 5%, take the REIT’s deals this week to more than £50m.
The two properties, a 125,000 sq ft forward-funding at Leicester’s Crosslink 646 and a nine-acre site in Droitwich, Worcestershire, are expected to generate rent of £1.4m pa.
LondonMetric has spent another £29m on two urban logistics properties.
The deals, which reflect yields of 4.5% and a reversionary yield of 5%, take the REIT’s deals this week to more than £50m.
The two properties, a 125,000 sq ft forward-funding at Leicester’s Crosslink 646 and a nine-acre site in Droitwich, Worcestershire, are expected to generate rent of £1.4m pa.
The Leicester scheme consists of two units and is expected to complete at the start of 2023. The largest unit, totalling 90,000 sq ft, is prelet to EM Pharma on a new 15-year lease. The Droitwich site is used for vehicle storage and is let to Amazon for a further five years. The site has planning consent for a 200,000 sq ft distribution warehouse.
Chief executive Andrew Jones said: “We are continuing to allocate capital into the strongest geographies within the distribution sector, where we can benefit from attractive entry yields and structurally supported occupier demand to capture superior rental growth.”
On Monday, LondonMetric announced that it had bought six London warehouses for a total of £26.7m as it pivots to smaller sites in stronger cities.
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