LondonMetric has exchanged contracts to buy a 410,000 sq ft Eddie Stobart distribution centre in Dagenham, east London.
It paid £56.5m – a 5.1% yield – to Meaalofa Developments Holdings (a joint venture between Sheikh Holdings and Landid, funded by Longbow).
The 28-acre site is let entirely to Eddie Stobart at a rent of £3m pa for 17 years from August 2014, with annual fixed uplifts of 2% pa.
LondonMetric and Eddie Stobart are now working up plans to redevelop the asset, including the replacement of two existing units with a new 115,000 sq ft extension to accommodate the significant growth in business being generated.
Andrew Jones, chief executive of LondonMetric, said: “This is an exceptional strategic distribution asset in London with excellent asset management and development opportunities.”
DTRE advised the buyer; Savills represented the vendor.
