LondonMetric has bought a long-let distribution warehouse in Doncaster for £21.2m.
The 264,000 sq ft regional logistics warehouse is let to Next for a further 13 years at a rent of £1.42m pa, reflecting a net initial yield of 6.3%.
The lease benefits from annual fixed rental uplifts of 2.5% which will increase the purchase NIY to 7.1% within three years.
Separately, the REIT has sold an 18,000 sq ft office investment in Chiswick, west London, for £7.4m. The multi-let office is 59% occupied with a WAULT of 1.5 years and was acquired as part of the A&J Mucklow takeover in 2019.
Chief executive Andrew Jones said: “As the UK economy reaches an inflection point on both inflation and interest rates, we are increasingly attracted to triple net leased assets that have strong income compounding characteristics and certainty of growth.
“We have continued to successfully exit non-core assets and reinvest into sectors that benefit from structural tailwinds. We have now, based on purchase value, disposed of 39% of the Mucklow portfolio.”
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