LondonMetric has exchanged contracts on two lettings totalling around 260,000 sq ft in Bedford and Northampton.
The deals both have 15-year lease terms, with 10 years to break.
LondonMetric has let 172,000 sq ft to packaging supplier Carlton Packaging at its Bedford Link development, at a rent of £1.33m pa (£7.70 per sq ft). This is subject to five-yearly rent reviews at the higher of CPI plus 1% or open market.
The recently developed warehouse is rated BREEAM Excellent and, under the terms of the letting, 250kW of solar panels will be installed. The letting crystallises a yield on cost of 7.3%.
The REIT has also relet 86,000 sq ft to children’s gift supplier My 1st Years at Grange Park, Northampton, following a minor refurbishment.
This was at a rent of £650,000 pa (£7.50 per sq ft), representing a 29% uplift on the previous passing rent. It is subject to five-yearly reviews of CPI plus 1%.
Mark Stirling, asset director at LondonMetric, said these represented record rents for each scheme. The deals have also reduced warehouse vacancy across LondonMetric’s portfolio to less than 1%.
He added that “good progress” is being made with preletting the final warehouse at Bedford Link, which measures 360,000 sq ft and is due to complete at the end of the year.
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