LondonMetric Group purchases 14 logistic warehouses for £116m

LondonMetric Property plc has acquired 14 urban and regional logistic warehouses for £116.60m from Cabot Properties.

The purchase price reflects a day-one yield on cost of 6.1%. The huge 1.3m sq-ft of warehouses are all in established locations where there is accessible motorway connection and occupier demand.

Out of these 14 buildings, 11 of them are urban logistic warehouses and over half are located in the South-East and Midlands.

Andrew Jones, chief executive of LondonMetric, said: “Following recent non-core disposals totalling £116.3m, we are pleased to have re-invested the sale proceeds into the distribution sector in such a quick timescale.

“This acquisition increases our mass in the sub-sector to over £260m across 38 assets. The acquired portfolio is fully income generating and offers good opportunities to extend lease lengths and capture strong income growth.”

The project has a WAULT of 5.6 years and is let at a low average rent of £5.50 psf. Over 60 per cent of the £7.2m income is from retailers and third-party logistics operators including DHL, Howdens and Royal Mail.

LondonMetric was advised by JLL Accord Capital Partners, along with its affiliate, Accord Europe Limited, serving as global capital advisor for Cabot Properties.