UK REIT LondonMetric is acquiring two distribution warehouses in Northamptonshire and Leicester in the UK.
UK REIT LondonMetric is acquiring two distribution warehouses in Northamptonshire and Leicester in the UK.
The investment volume for the two assets comes to £23.1 mln (€27.4 mln), reflecting a combined net initial yield of 7.5%. LondonMetric said it would fund the transaction from existing resources.
The UK firm announced on 9 September that it had exchanged contracts with the European arm of US investor Harbert for a 28,500 m2 warehouse in Crick, Northamptonshire. The purchase price of £17.9 mln (net of acquisition costs), reflects a net initial yield of 7.3%, rising to 8.4% in year five.
The property is located within the Midland's 'Golden Triangle', fronting the M1 at junction 18, and opposite the Daventry International Rail Freight Terminal (DIRFT). The unit has been let to logistics operator Norbert Dentressengle on a 15-year lease.
The site forms part of a 12-hectare redevelopment site which already has planning consent for a new 42,360 m2 distribution centre.
LondonMetric also announced that it has completed the acquisition of the Boden Distribution Unit, Meridian Business Park from a Rockspring-managed fund for £5.2 mln net of acquisition costs, reflecting a net initial yield of 8.3%.
The 9,141 m2 warehouse is let to internet/catalogue clothing retailer Boden until 2020 (2017 to break). The warehouse, along with an adjacent 7,813 m2 warehouse, represents Boden's only distribution outlet in the UK.
Following these acquisitions, the LondonMetric distribution portfolio comprises eight distribution centres with a combined portfolio value of £195.5 mln, representing 18% of the enlarged group's portfolio.
CBRE and Jones Lang LaSalle advised LondonMetric on the Northamptonshire and Leicester deals respectively, while DTRE advised Harbert Europe on the Northamptonshire transaction and Collingwood Rigby advised Rockspring on Leicester.
