LONDON (ShareCast) - (Sharecast News) - LondonMetric has bought two urban logistics warehouses for £23.5m, reflecting a blended net initial yield of 4.9%, rising to 5.6% after five years, with an average lease length of 13 years.
The first is a 48,000 sq ft warehouse in Avonmouth, let to pallet supplier and distributor CHEP at a rent of £0.7m a year, subject to annual retail price index-linked reviews of between 2% and 4%. The second is a 80,000 sq ft warehouse in Cambridgeshire, let to nutritional ingredients supplier Cambridge Commodities at an annual rent of £0.5m, also subject to RPI-linked reviews of between 2% and 4%.

The Avonmouth warehouse is located on Central Park, which the South West's largest distribution park, while the Cambridgeshire warehouse is located on an established business park occupied by tech and R&D focused companies.

Chief executive Andrew Jones said: "These two modern warehouses are fully income generating, let for an average of 13 years to established occupiers and benefit from guaranteed rental growth.

"Following these acquisitions, our urban logistics portfolio is approximately £420m and we will continue to take advantage of selective opportunities to grow our urban logistics portfolio above £500m million in the near term."

LondonMetric was advised by Knight Frank at Avonmouth and by FSP at Cambridgeshire.

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