LondonMetric Property has spent £39m on two new urban logistics warehouse acquisitions.
The company has bought a 137,000 sq ft warehouse close to completion in Manchester’s Northbank Industrial Park from Marshall CDP for £20.5m. The building is prelet to home lighting retailer LSE Group Holdings for an annual rent of £900,000.
In Birmingham, the company is paying Fiera Real Estate-backed Opus Land £18.1m for a new, 122,000 sq ft Oldbury warehouse let at £800,000 per annum to Eriks, an industrial service provider that is already a tenant of LondonMetric.
Together, the two deals reflect a blended yield on cost of 4.25%.
Andrew Jones, LondonMetric’s chief executive, said: “These newly built warehouses are fully income-generating, well-located and let on long leases to established and growing occupiers. They provide guaranteed rental growth, will further improve the quality of our portfolio and allow us to extend both existing and new occupier relationships.”
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