UK REIT LondonMetric is acquiring the Marks & Spencer (M&S) distribution centre in Sheffield from clients of CBRE Global Investors.
UK REIT LondonMetric is acquiring the Marks & Spencer (M&S) distribution centre in Sheffield from clients of CBRE Global Investors.
The purchase price of £32 mln (€38 mln), net of acquisition costs, reflects a net initial yield of 7.6%.
The asset comprises two units totalling 58,000 m2 located at the Sheffield International Rail Freight Terminal (SIRFT) which is strategically located near the M1 motorway, to the east of Sheffield City Centre and within five miles of the M18/M1 intersection.
M&S recently entered into a new 10-year lease expiring in November 2023 on both units, with a tenant break option on unit 2 after five years, and has made a commitment to invest in the asset as part of a drive to improve its logistics portfolio.
Following this acquisition, LondonMetric's distribution portfolio comprises 12 distribution centres with a combined value of £294 mln, representing 27% of the enlarged group's portfolio.
Cushman Wakefield advised LondonMetric and CBRE acted for CBRE Global Investors.