UK REIT LondonMetric Property has acquired three distribution warehouses in England for £21.8 mln (almost €28 mln).
UK REIT LondonMetric Property has acquired three distribution warehouses in England for £21.8 mln (almost €28 mln).
The UK REIT said that the investment volume for the properties, totalling 19,750 m2, reflects a net initial yield of 6.6%, which contractually rises to 6.9% within two years.
The warehouses are located in Castle Donington (Leicestershire), Royston and Hemel Hempstead (both Hertfordshire). They are let to toy retailer Hamleys, Howdens and Goodrich respectively for a total rent of £1.5 mln per annum and an average weighed average unexpired lease term of 12.4 years.
LondonMetric acquired the assets from private vendors and will fund the investments from existing resources.
Separately, LondonMetric's joint venture with Universities Superannuation Scheme, the Metric Income Plus Limited Partnership, has sold its Wickes out-of-town retail unit in Nottingham. The investment volume of £5.2 mln reflects a net initial yield of 6.4%.
The joint venture purchased the property for £4.5 mln in November 2012, reflecting a yield on cost of 7.4%.
