LondonMetric has bought six London warehouses for a total of £26.7m as it pivots to smaller sites in stronger cities.
The urban logistics sites were bought in separate transactions and reflect an anticipated blended initial yield of 4.3% and a reversionary yield of more than 4.5%.
Three of the properties – in Colliers Wood, Stratford and Stockwell – were acquired with vacant possession and will be redeveloped or refurbished at an anticipated yield on cost of 4.5%.
The remaining properties – in Hackney, Acton and Thamesmead – are fully let with a WAULT of 11.4 years and have been acquired at a net initial yield of 3.9% and a reversionary yield of 4.7%.
The assets are expected to generate a total rent of £1.2m pa.
Chief executive Andrew Jones said: “With the logistics market incredibly well bid, we are increasing our investment focus towards smaller opportunities in the strongest urban centres where we can leverage our asset management expertise to significantly enhance returns.”
He added: “While we seek to avoid unnecessary transactional activity, we will take advantage of strong approaches for assets and dispose of properties where we believe returns are less predictable.”
In a separate deal, LondonMetric has sold a multi-let industrial estate in Crawley, West Sussex, for £8.5m, reflecting a NIY of 3.5%. The units have a WAULT of three years and have been sold at a material premium to book value.
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