LondonMetric Property has bought two sheds, in Northamptonshire and Leicester, for its distribution centre portfolio.
The company paid £23.1m for the two assets, reflecting a combined 7.5% net initial yield.
It paid £17.9m for a 310,500 sq ft warehouse in Crick, Northants, from Harbert Europe, reflecting a 7.3% yield, rising to 8.4% in year five.
The building is let to logistics firm Norbert Dentressangle on a 15-year lease, with a 10-year break option.
At the Meridian business park in Leicester, LondonMetric has exchanged on a 98,400 sq ft asset from Rockspring, for £5.2m- a 8.3% yield. It is let to catalogue clothing retailer Boden until 2020.
LondonMetric’s distribution portfolio now comprises eight distribution centres with a combined portfolio value of £195.5m, representing 18% of the enlarged group’s portfolio.
Andrew Jones, chief executive of LondonMetric said: “We have now acquired £88m of distribution property since July this year, which is in line with our ongoing strategy to rebalance the portfolio towards distribution opportunities, as we continue to grow our rental income and increase our exposure to capital growth opportunities.”
CBRE and Jones Lang LaSalle advised LondonMetric on Northamptonshire and Leicester, respectively; DTRE advised Harbert Europe; Collingwood Rigby acted for Rockspring.
joanna.bourke@estatesgazette.com
