LondonMetric increase logistics portfolio
LondonMetric Property have acquired two units in Crosslink 646, Leicester. Announcing the purchase the logistics company also confirmed the purchase of a unit in Droitwich.
Two of the units have lease agreed with EM Pharma taking the largest unit in Leicester and Amazon agreeing terms for the Droitwich units.
The property management firm announced the acquisition of the two urban logistics properties for £28.8 million. They further stated the separate transactions will provide an anticipated blended yield of 4.5% and a reversionary yield of 5.0%.
LondonMetric are one of the UK’s leading listed logistics platforms with a grocery-led long income portfolio.
The double purchase comes one week after the firm sold a multi-let industrial estate in Crawley for £8.5 million.
The newly acquired properties are expected to generate £1.4m per year in rental income.
One of the properties is a 125,000sqft urban logistics forward fund development consisting of two units at Crosslink 646 in Leicester, which is planned to be completed at the beginning of 2023.
It is the largest unit, with a total area of 90,000sqft which has been pre-let to EM Pharma for a new 15-year lease at £7.25 per sq ft with RPI linked rent reviews.
The smaller 35,000sqft property will be built on the speculative market and is estimated to offer a 5% return on investment with the benefit of a solar PV system, the property is likely to be certified BREEAM “Very Good”.
The other acquisition is nine acres of land in Droitwich which is now utilised for car storage, it has been leased to Amazon for another five years with CPI-linked rent increases.
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