Member Article

LondonMetric to begin £16m redevelopment at Eddie Stobart logistics centre

London-headquartered property investor LondonMetric has said it is to begin work on enlarging an Eddie Stobart logistics centre in east London after exchanging contracts with the transport group.

The redevelopment at Stobart’s Dagenham base will see the construction of a new 180,000 sq ft distribution unit at the site, with two existing units totalling 150,000 sq making way for the new structure.

Planning consent has already been obtained for the development, which is due to begin next month, ahead of an April 2018 completion, while LondonMetric have estimated that development costs will be somewhere in the region of £16m.

As part of the deal, the logistics firm has signed a new 26 year lease at an increased rent for the site which, once completed, will span 436,000 sq ft.

Following the announcement to the stock exchange this morning, Valentine Beresford, Investment Director of LondonMetric, commented: “We have been working on this redevelopment opportunity alongside Eddie Stobart since purchase and are delighted to be in a position to commence construction.

“This asset is exceptionally well located and the redevelopment will significantly improve its operation at Dagenham and create a modern, fit for purpose distribution facility for Eddie Stobart.”

The news comes as Eddie Stobart revealed this morning that it intends to raise around £130m when it floats on AIM next month.