Industrial investor LondonMetric is aiming to roll out a slew of so-called dark kitchens across the capital, after buying two sites in Brent Cross and Streatham for £13.5m.
The company has agreed a 20-year lease with operator Jacuna Kitchens across around three-quarters of the new space, in which the tenant will run about 100 of the kitchens.
Dark kitchens are sites where meals are prepared in warehouses, rather than restaurants, for home delivery.
They have existed for decades in the event catering sector, but have grown in popularity during the pandemic, with companies such as Deliveroo and JustEat cashing in on a spike in demand for food delivery.
LondonMetric said it would refurbish the two sites and upgrade the warehouses to provide better power, ventilation and drainage to the buildings.
It is negotiating a lease for the remaining space with a new delivery start-up. After finishing the letting and refurbishment process, the company expects to deliver a yield on cost of 5.4% across both sites.
LondonMetric chief executive Andrew Jones said: “We are excited by the dark kitchen sector and are pleased to be able to work with Jacuna on acquiring these warehouses and upgrading the facilities to their requirements. We are working with them on the roll-out of further dark kitchen facilities across London.”
To send feedback, e-mail alex.daniel@eg.co.uk or tweet @alexmdaniel or @EGPropertyNews
