LONDON (ShareCast) - Industrial property group SEGRO has bought a 25,500 square-metre logistics warehouse in Barking from Propinvest's Gemini portfolio for 30m pounds.

It said that the consideration represents a net initial yield of 6.9%.

London City Bond Ltd, a bonded warehousing and distribution company servicing the wines and spirits industry, is currently renting out the property until 2028.

SEGRO said that the warehouse is well-located with fast access to Central London, the M25 and other major motorways. It said that East London has "strong potential for expansion given the on-going regeneration of the area and limited supply of good quality logistics warehousing".

"This is an excellent opportunity to acquire a modern and well specified warehouse in a key location close to central London, where the supply of this type of product is limited, and with good national transport links," said Phil Redding, SEGRO's Chief Investment Officer.

"The purchase fits with our strategic objective of expanding our big box logistics platform in major transportation hubs and corridors, both in the UK and via our new joint venture, SEGRO European Logistics Partnership, in Continental Europe."

BC

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