LondonMetric Property has announced the acquisition of two logistics warehouses in the UK for £47.6 mln (€54 mln), reflecting a blended net initial yield of 5.0% rising to a minimum of 5.6% after five years.
The average lease length is over 18 years.
At Ollerton in Nottinghamshire, LondonMetric has agreed to acquire a 364,000 sq ft (33,800 m2) regional warehouse let to Clipper Logistics on a 20 year lease, at a rent of £5.04 per sq ft, subject to annually payable RPI uplifts of between 2 - 4%.
Founded in 1992 and listed in 2014, Clipper is a major UK provider of logistics solutions and e-fulfilment to the retail sector and employs nearly 4,000 people.
At Speke, LondonMetric has acquired a new 132,000 sq ft regional logistics warehouse let to Gefco, on a new 15 year lease, at a rent of £5.17 per sq ft subject to five yearly RPI linked reviews of between 2 - 4%. Gefco is a global logistics company with an annual turnover of over €4 bn.
Andrew Jones, Chief Executive of LondonMetric, commented: 'Following the recent disposals of two short let assets in Daventry and Bolton, we have quickly recycled some of the proceeds into two very long let logistics investments where we will benefit from guaranteed rental growth.'
Swettenham Real Estate and CPP acted for LondonMetric, and M1 Agency acted for the vendor on Ollerton.
Earlier this week LondonMetric Property exchanged contracts to sell an Odeon Cinema in Derby and a retail asset in Guisborough, UK for £18.6 mln (€21 mln) reflecting a blended net initial yield of 4.8%.
