LondonMetric Property PLC TWO URBAN LOGISTICS ACQUISITIONS FOR GBP39M (3109L)
January 12 2021 - 2:00AM
UK Regulatory
TIDMLMP
RNS Number : 3109L
LondonMetric Property PLC
12 January 2021
12 January 2021
LONDONMETRIC PROPERTY PLC
ACQUISITION OF TWO new urban LOGISTICS warehouses for GBP39
million
LondonMetric Property Plc ("LondonMetric") announces the
acquisition of two urban logistics warehouses in Manchester and
Birmingham for GBP39 million, reflecting a blended yield on cost of
4.25%. The newly built warehouses are let for 15 years at an
average rent of GBP6.60 psf and benefit from RPI linked rent
reviews.
In Manchester, a 137,000 sq ft urban warehouse has been acquired
for GBP20.5 million subject to practical completion, which is
expected next month. It is pre-let at a rent of GBP0.9 million pa
to LSE Group Holdings, the largest UK pure play online retailer of
home lighting. Reflecting its strong growth, the occupier is
upsizing its operations into the warehouse which will also act as
its headquarters. The building has a low site density of 32% and is
located between the M60 and M6 on the established Northbank
Industrial Park.
In Birmingham, a recently completed 122,000 sq ft urban
warehouse has been acquired for GBP18.1 million, let at a rent of
GBP0.8 million pa to ERIKS, an international industrial service
provider with whom LondonMetric has a strong existing relationship.
The occupier is consolidating its operations into the warehouse
which will act as its UK headquarters and will be fully automated
with high-level racking, vertical lift systems and rapid transit
conveyors. The building is located in Oldbury, close to J2 of the
M5.
The warehouses are highly specified and have been built to a
BREEAM Very Good standard.
The property in Manchester has been acquired from Marshall CDP,
a commercial development and construction company, whilst the
property in Birmingham was purchased from Opus Land, a leading West
Midlands based property development company backed by Fiera Real
Estate.
Andrew Jones, Chief Executive of LondonMetric, commented:
"Our strong relationships have allowed us to secure two
additional high quality assets. These newly built warehouses are
fully income generating, well located and let on long leases to
established and growing occupiers. They provide guaranteed rental
growth, will further improve the quality of our portfolio and allow
us to extend both existing and new occupier relationships."
-Ends-
For further information, please contact:
LondonMetric Property Plc
Andrew Jones / Martin McGann / Gareth Price
Tel: +44 (0) 20 7484 9000
FTI Consulting
Dido Laurimore / Richard Gotla / Andrew Davis
Tel: +44 (0)20 3727 1000
About LondonMetric Property Plc
LondonMetric is a FTSE 250 REIT that owns one of the UK's
leading listed logistics platforms alongside a diversified long
income portfolio, with 16 million sq ft under management. It owns
and manages desirable real estate that meets occupiers' demands,
delivers reliable, repetitive and growing income-led returns and
outperforms over the long term.
Further information is available at www.londonmetric.com
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END
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