LondonMetric has bought Royal Mail’s main distribution centre at Daventry International Rail Freight Terminal for £36m in an off-market deal.
The property was sold by Meghraj Properties, and the price reflects a net initial yield of 6.7%.
The 272,600 sq ft distribution centre is let on a rent of £2.5m pa with annual RPI-linked uplifts capped at 3%, for an unexpired lease term of 9.7 years.
In a separate deal, LondonMetric has sold Congleton Retail Park in Cheshire to Lothbury Investment Management for £16.39m – a net initial yield of 5.85%. Contracts have been exchanged, and the deal is expected to complete later today. The 64,500 sq ft park is let to tenants including Laura Ashley, Carphone Warehouse and Boots, with a weighted average unexpired lease term of seven years.
Andrew Jones, chief executive of LondonMetric, said: “The Royal Mail distribution centre represents an attractive off-market acquisition that is in line with our strategy of increasing our ownership of key distribution assets that will continue to benefit from the growth in online retail spending. This is a strategic asset for both Royal Mail and its customers, with both Asos and Amazon accounting for over 10% of daily throughput.”
