LondonMetric Property has announced the placing of 62,804,390 of shares to raise new funds for the acquisition of last-mile distribution warehouses.
The placing represent 9.9% of the company’s issued share capital, and will raise around £97m.
It said £30m of this will go towards a pipeline of last-mile sheds, while £42m will build out three existing assets that have announced recent prelets at Dagenham, Stoke and Crawley.
The remaining £28m will be used to fund recently completed investments, and LondonMetric said it expects to deploy 75% within the next six months.
Andrew Jones, chief executive of LondonMetric, said: “Our increased commitment to last mile acquisitions and short cycle distribution developments, together with a healthy pipeline of further opportunities, will support our plans to grow our distribution exposure to at least 70% within a year.
“Earlier this week, we secured two further last-mile acquisitions and today we have announced major prelettings to Eddie Stobart and Michelin, alongside the letting to Amazon.”
It has exchanged contracts with Michelin to build a 137,000 sq ft distribution centre at its site in Stoke. Michelin has signed a new 15-year lease at a rent of £5.35 per sq ft, subject to five yearly reviews.
In Dagenham, it has exchanged contracts with Eddie Stobart to build a single new 180,000 sq ft distribution unit. Eddie Stobart has signed a 26-year lease across the enlarged 436,000 sq ft logistics centre at an increased rent, subject to five yearly RPI rent reviews.
The company has made 15 last-mile acquisitions in the last year for £98m.
- Basildon: £3.8m
- Crawley: £20.1m
- Hemel Hempstead: £8.3m
- Stevenage: £7.3m
- Portfolio of six assets: £26m
- Bicester: £3.2m
- Crawley: £10.7m
- Dartford: £6.3m
- Leeds: £7.9m
- Leeds: £4m
LondonMetric was advised by DTRE and JLL at Omega South, and by CBRE and Avison Young at Stoke.
To send feedback, e-mail alex.peace@egi.co.uk or tweet @egalexpeace or @estatesgazette
