The 51,500 sq ft (4,780 m2) property is located in New Malden and is majority let to Dixons Carphone with a smaller unit let to Dreams.
LondonMetric was advised by Cortex and Curzon Sowerby. The vendor was represented by Savills.
UK REIT LondonMetric Property has purchased 14 urban and regional logistics warehouses for £116.6 mln (€129 mln) from Cabot Properties.
According to LondonMetric, the purchase price reflects a yield on cost of 6.1% and a reversionary yield of 6.6%.
Totalling 1.3 million sq ft (120,800 m2) of warehouse space, 11 of the 14 buildings are 'last mile'/urban logistic warehouses and over half are located in the South East and Midlands.
'Following recent non-core disposals of Milford Haven, Loughborough and Marlow totalling £116.3 mln, we are pleased to have re-invested the sale proceeds into the distribution sector within such a quick timescale,' commented Andrew Jones, chief executive of LondonMetric.
'The urban logistics market continues to benefit from a highly favourable demand/supply imbalance and this acquisition further increases our critical mass in this sub-sector to over £260 mln across 38 assets. The acquired portfolio is fully income generating and offers good opportunities to extend lease lengths and capture strong income growth.'
The portfolio has a weighted average unexpired least term (WAULT) of 5.6 years and is let at an average rent of £5.50 per ft2. Over 60% of the £7.2 mln income is from retailers and third party logistics operators including DHL, Howdens, Unipart and Royal Mail.
This acquisition increases LondonMetric’s distribution weighting to 69% and LTV to 37%.
LondonMetric was advised by JLL. Accord Capital Partners LLC, along with its affiliate, Accord Europe Limited, advised Cabot Properties.
The deal follows LondonMetric's acquisition of Burlington Retail Park in southwest London for £28.3 mln (€31.2 mln) from a large, unnamed UK institution.
