LONDON (ShareCast) - (Sharecast News) - Real estate investment trust LondonMetric has acquired a "well-located" urban logistics warehouse in Waltham Cross for £43.8m as part of a sale and lease back transaction.
LondonMetric said on Wednesday that the 115,000 square foot warehouse, let to foodservice business Reynolds on a new 23-year lease, was located in "a highly established logistics area of Enfield" adjacent to the M25 and less than a five-minute drive from Junction 25.

The FTSE 250-listed company noted that the property generates a rent of £1.6m per annum, just under 10% below market rent, with contractual rent reviews set to increase the purchase net initial yield from 3.5% to an expected 4.0% after five years.

Following the acquisition, LondonMetric's urban logistics portfolio's weighting towards London and the South East increased to over 50%.

Chief executive Andrew Jones said: "We are pleased to be able to redeploy recent sales receipts into such a high quality, well-located asset offering the certainty of excellent income growth with the comfort of a high intrinsic site value.

"Assets of this quality seldom become available and we look forward to building on our relationship with Reynolds and welcome them as one of our key customers."

As of 0855 BST, LondonMetric shares were down 0.35% at 225.60p.

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