LondonMetric Property has exchanged contracts for the off-market acquisition of the Dixons retail distribution centre in Newark, Nottinghamshire, for £68.5m – a 6.4% net initial yield.
The acquisition from a private investor will be funded from the company’s existing resources. The distribution portfolio now represents 35% of the group’s portfolio.
The 726,200 sq ft asset was purpose built for Dixons Carphone in 2006 and is let at a rent of £4.5m pa with five-yearly fixed uplifts to 3% pa compounded. It has an unexpired lease term of 18.8 years.
The warehouse and an adjacent 750,000 sq ft distribution centre serve as Dixons Carphone’s central distribution hub for both its physical stores and online business.
LondonMetric’s distribution portfolio now totals £450.9m, which comprises 18 distribution centres with a weighted average unexpired lease term of 15.4 years, 99.8% occupancy and with 61% of the portfolio subject to fixed uplift or RPI income.
Chief executive Andrew Jones said: “The purchase of this prime distribution centre further reinforces our leading position within the retail distribution sector and extends our long-standing relationship with Dixons Carphone, which is already one of our key customers within our retail warehouse portfolio.
“The retail distribution sector is becoming an ever more critical element of the retail space and we intend to continue with our strategic focus of expanding our investment into this growth sector in tandem with deepening our strong retailer relationships.”
DTRE acted for LondonMetric.
annabel.dixon@estatesgazette.com
LondonMetric Property has exchanged contracts for the off-market acquisition of the Dixons retail distribution centre in Newark, Nottinghamshire, for £68.5m – a 6.4% net initial yield. The acquisition from a private investor will be funded from the company’s existing resources. The distribution portfolio now represents 35% of the group’s portfolio. The 726,200 sq ft asset was purpose built for Dixons Carphone in 2006 and is let at a rent of £4.5m pa with five-yearly fixed uplifts to 3% pa compounded. It has an unexpired lease term of 18.8 years. The warehouse and an adjacent 750,000 sq ft distribution centre serve as Dixons Carphone’s central distribution hub for both its physical stores and online business. LondonMetric’s distribution portfolio now totals £450.9m, which comprises 18 distribution centres with a weighted average unexpired lease term of 15.4 years, 99.8% occupancy and with 61% of the portfolio subject to fixed uplift or RPI income. Chief executive Andrew Jones said: “The purchase of this prime distribution centre further reinforces our leading position within the retail distribution sector and extends our long-standing relationship with Dixons Carphone, which is already one of our key customers within our retail warehouse portfolio. “The retail distribution sector is becoming an ever more critical element of the retail space and we intend to continue with our strategic focus of expanding our investment into this growth sector in tandem with deepening our strong retailer relationships.” DTRE acted for LondonMetric. annabel.dixon@estatesgazette.com
