LondonMetric Property has exchanged contracts with CDP, the development arm of the Marshall Construction Group, to purchase and forward fund the development of a new 524,000 sq ft (48,680 m2) retail distribution centre in Wakefield, UK for £39.4 mln (€55 mln).
LondonMetric Property has exchanged contracts with CDP, the development arm of the Marshall Construction Group, to purchase and forward fund the development of a new 524,000 sq ft (48,680 m2) retail distribution centre in Wakefield, UK for £39.4 mln (€55 mln).
The deal reflects a yield on cost to LondonMetric of 6.3%.
The warehouse has been pre-let to Poundworld Retail on a 15 year lease at a rent of £2.5 mln per annum. Construction is due to commence later this summer with practical completion targeted for Autumn 2016.
The 30 acre site is located in a well-established logistics hub with adjoining occupiers including Asda, DHL, HSBC, Royal Mail and TK Maxx.
Following this acquisition, LondonMetric's distribution portfolio comprises 23 distribution centres and totals £661.6 mln. The distribution portfolio has 100% occupancy, and a weighted average unexpired lease term of 13.8 years.
Andrew Jones, Chief Executive of LondonMetric, commented: 'As our two existing distribution developments near practical completion, this acquisition replenishes our near term development portfolio and extends our currently committed and pipeline developments to 3.5 million sq ft.'
JLL advised LondonMetric in the transaction.
