LondonMetric Property has bought an urban logistics warehouse in Luton, Bedfordshire, from Marcol Industrial Investments for £15.5m.
The 168,000 sq ft property is located on Luton Enterprise Park, close to Luton town centre and Junction 11A of the M1. It is let to two occupiers with a WAULT of three years. The rent of £700,000 per annum equates to just £4.20 per sq ft, reflecting a net initial yield of 4.3%, which rises to 5.9% based on ERV.
LondonMetric said the property offered “significant potential for redevelopment”, which it would look to progress on expiry of leases.
Chief executive Andrew Jones said: “We continue to grow our urban logistics portfolio with quality acquisitions and this latest transaction is an excellent covered land opportunity in a very strong location offering significant rental reversion as well as attractive future redevelopment potential.”
LondonMetric was advised by Adroit and Knight Frank on the acquisition; Marcol was advised by Savills.
View recent rents achieved on industrial space in Luton >>
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