LondonMetric Property has agreed to purchase and forward fund a 232,000 sq ft warehouse adjacent to Junction 36 of the M62 for £24m.
The warehouse has been prelet to chemical company Croda on a 20-year lease at a rent of £1.3m a year. The deal reflected a yield on cost of 5.2%.
The 33-acre site has planning consent for 140,000 sq ft and LondonMetric will forward fund developer db symmetry to deliver the scheme.
Construction is due to start imminently and is expected to complete in mid-2020.
LondonMetric chief executive Andrew Jones said: “In this ongoing low interest rate environment, we continue to be attracted to sustainable real estate which can deliver reliable, repetitive and growing income returns.
“This latest distribution investment is let to a high-quality occupier who is an existing customer of ours. It benefits from a very long lease at an attractive yield that is inflation linked and will further improve the quality of our portfolio as well as offer further occupier-led development potential.”
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