LondonMetric has acquired a portfolio of nine urban logistics assets, totalling 340,000 sq ft, and one retail store, from the ACT Foundation for £55m – a net initial yield of 4.4%.
The portfolio, half of which is located in London and the South East, has a weighted average unexpired lease term of nine years. Its logistics tenants include Ceva Logistics, DSV and Jewson. The store is let to Wickes for a further 14 years.
Average rent is £6.90 per sq ft, below the ERV of £8.10 per sq ft.
Andrew Jones, chief executive of LondonMetric, said: “Following the recent disposal of six non-core distribution assets for £36m, we are pleased to have re-allocated the proceeds into a much stronger and better-located portfolio within such a quick timescale.
“The portfolio is fully income generating, offers good opportunities to capture strong income growth and increases our urban logistics portfolio to approximately £400m.”
JLL advised LondonMetric, and CBRE advised the ACT Foundation.
To send feedback, e-mail karl.tomusk@egi.co.uk or tweet @ktomusk or @estatesgazette
