UK real estate investment trust (REIT) LondonMetric Property has acquired a £74m (€86.4m) logistics warehouse let on a long lease to retailer M&S. The deal represents a net initial yield of 5.65%.
The London-listed REIT said the 390,000sqft regional logistics warehouse in Bristol, currently under development by Epta Development Corporation (EDC) and its development partner, Stoford, has been pre-let on a 20-year lease.
The property is situated at Axis Works, adjacent to other warehouse assets in Avonmouth owned by LondonMetric.
Andrew Jones, chief executive of LondonMetric, said: “This is a high-quality development let on a very long lease to one of the UK’s strongest retailers. It will deliver income longevity, certainty and guaranteed growth. It further extends our relationship with M&S and adds another exceptional building to LondonMetric’s portfolio.”
Chris Tsakumis, principal at EDC, said: “We are pleased to have invested in the site and our long-term UK investment strategy has reaped initial dividends with the announcement of our first occupier and investment sale.”
Alex Freudmann, MD of M&S Food, said: “Modernising our supply chain is key to increasing the capacity in our network and will help us get ahead of the volume curve we are driving in M&S Food to meet our ambition of becoming a shopping list retailer.
“This new site will ensure that we’re getting the right products to the right stores at the right time for our customers. It will also create a great working environment for our colleagues.”
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