LondonMetric Property has acquired a Primark distribution unit in Thrapston, Northamptonshire, from Moorfield Real Estate Fund II for £60.5m.
The acquisition reflects a 6.4% net initial yield after purchasers’ costs.
The scheme is Primark’s central distribution centre for the UK and comprises 785,000 sq ft. It is fully let to Primark until October 2032 at a rent of £3.9m pa.
The lease has 1.5% fixed annual uplifts and upward-only open market rent reviews every five years.
Adjoining occupiers include Paperchase, Morrisons and DSV Logistics.
LondonMetric’s distribution portfolio represents 22% of LondonMetric’s total portfolio.
The distribution portfolio comprises 13 assets valued at circa £245m and a weighted average unexpired lease term of 13 years.
LondonMetric chief executive Andrew Jones said: “The retail distribution sector is continuing to benefit from strong occupier interest as retailers’ multichannel strategies continue to evolve. We regard this as a key area for growth within our core portfolio and aim to capitalise on this dynamic further by leveraging our deep occupier relationships to secure more opportunities.
“Primark is one of the UK’s most successful retailers and the attractive lease terms reflect the demand/supply tensions within this sector. The investment offers excellent cash returns and exposure to prime real estate, let for nearly 20 years to a fantastic covenant, with guaranteed annual rental increases.”
Cushman & Wakefield advised LondonMetric; Doherty Baines advised Moorfield Real Estate Fund II.
annabel.dixon@estatesgazette.com
