(Sharecast News) - LondonMetric Property has exchanged contracts with J Sainsbury subsidiary Argos to extend the lease at its 656,000 square foot distribution warehouse by a further 12 years, it announced on Wednesday.
The FTSE 250 firm said the new lease would run for 15 years without break, and generate a rent of £4.1m per annum, subject to five-yearly inflation-linked uplifts.

It said it had also exchanged contracts with Oak Furniture Land to extend its 302,000 square foot distribution warehouse in Swindon by 55,000 square feet.

Construction was expected to begin in May at a cost of £4m, delivering a marginal yield on cost of 8%.

Following removal of the break, the lease was now running for a further nine years, generating a rent of £1.9m per annum, subject to five-yearly inflation-linked uplifts.

"We continue to work closely with our occupiers to ensure that our real estate meets their future trading requirements and remains fit for purpose," said LondonMetric asset director Mark Stirling.

"These transactions demonstrate the strength of occupier contentment at our properties and their confidence in the outlook for their businesses.

"As well as providing greater certainty of income, these deals also give us better certainty of future income growth with all of our mega distribution warehouses now benefiting from contractual rental uplifts."

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