LondonMetric Property Plc acquires portfolio of logistic warehouses in £55m deal

LondonMetric Property Plc has acquired ten single let properties for £55m from the ACT Foundation.

The portfolio of properties consist of nine urban logistics assets totalling 340,000 sq ft and a retail store let to Wickes for a further 14 years.

The assets are in distribution locations and approximately 50% are located in London and the South East with a further 35% located in the Midlands.

Two of the assets representing 20% of ERV are located in Park Royal and Greenford.

The portfolio has a WAULT of nine years which is expected to rise to 12 years on anticipated regears.

With an income of £2.6m per annum, the portfolio is let to a range of tenants including Ceva Logistics, DSV, Jewson, Vodafone and Wickes.

The average rent is £6.90 psf which is significantly below ERV of £8.10 psf.

Andrew Jones, chief executive of LondonMetric, said: “Following the recent disposal of six non core distribution assets for £36m, we are pleased to have re-allocated the proceeds into a much stronger and better located portfolio within such a quick timescale.

“The portfolio is fully income generating, offers good opportunities to capture strong income growth and increases our urban logistics portfolio to approximately £400m.”

LondonMetric was advised by JLL. The seller was advised by CBRE.

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