Member Article

LondonMetric acquire two retail warehouses in £18m double deal

Property investors LondonMetric Property have announced the acquisition of two warehouses as part of their joint venture with the Universities Superannuation Scheme (USS).

Their Metric Income Plus Limited Partnership (MIPP) has snapped up a B&Q warehouse in Hull and a Wickes warehouse in Dartford for a total sum of £18.4m.

Totalling 71,000 sq ft, the warehouse in Hull has been bought from Stobart Group and Roebuck Asset Management for £9.4m. B&Q currently let the building for £750k per annum over an unexpired lease term of 12 years.

The Dartford property, which has been purchased for £9m, totals 40,000 sq ft and has been acquired from a private investor. As part of the acquisition, MIPP has agreed a new 20 year lease with Wickes at a rent of £600k per annum.

Andrew Jones, Chief Executive Officer at LondonMetric, said: “These are two strong income producing assets, let off an average lease term of over 15 years, generating an income return on equity in excess of 10%.

“Both assets trade well and these transactions demonstrate our strong occupier relationships to source attractive off-market opportunities, in both the retail and logistics sector.”

Graham Burnett, Head of Property at USS, added: “These are attractive acquisitions by LondonMetric on behalf of MIPP which continues to be a successful joint venture for the scheme and its members.”

MIPP was advised by Knight Frank on both deals and also by Beaton Associates on Dartford. Edgerley Simpson Howe represented Stobart and Roebuck.