UK REIT LondonMetric Property has acquired two last mile distribution warehouses in Leeds for £12 mln (€14 mln), reflecting a blended NIY of 6% and a reversionary yield of 6.5%.
'We continue to grow our exposure to last-mile distribution. As consumer delivery expectations increase, so the requirement for better urban logistics intensifies. These modern warehouses are well located and offer reversionary and asset management potential,' commented Andrew Jones, chief executive of LondonMetric.
The REIT purchased a new 100,000 ft2 warehouse on the Leeds ring road, close to the M1. The warehouse was completed in January 2017 and let to Vision Alert Automotives on a new 15 year lease at £5.00 / ft2 with open market rent reviews. The occupier is consolidating its operations and the new unit will serve as its UK headquarters.
LondonMetric has also acquired a 49,000 ft2 warehouse in an established location close to Leeds city centre and the M1/M621 junction. The warehouse was built in 2009 and is let to Siemens plc at £5.25 / ft2 with three years remaining of the ten year lease.
The two warehouses were built by CDP Ltd, the development arm of Marshall Construction.
LondonMetric was advised by Gent Visick.
