UK REIT LondonMetric has acquired a DHL distribution centre in Reading for £28.8 mln (€41 mln), reflecting a net initial yield of 5.8%.

UK REIT LondonMetric has acquired a DHL distribution centre in Reading for £28.8 mln (€41 mln), reflecting a net initial yield of 5.8%.

The 21,400 m2 facility is located on a 4.65 ha site beside the M4 motorway and close to Tesco’s 9.3-hectare regional distribution hub.

The building is let to DHL for the next 10 years at a rent of £1.8 mln per annum, with an open market rent review due in July 2020.

LondonMetric said the property had been acquired from a private vendor and would be funded from existing resources.

Last month LondonMetric raised £75 mln from the sale of four retail properties in the UK regional market, including the Westcroft retail park in Milton Keynes for £27.2 mln, the DFS furniture warehouse in Enfield for £24.5 mln and the Mountbatten retail park in Southampton for £16.2 mln.

Andrew Jones, CEO of LondonMetric, said: ‘This acquisition is in line with our strategy of acquiring well located distribution assets that will generate real and sustainable income growth. The sector continues to benefit from growing demand/supply tension which will allow us to capture an increasing reversion over the next few years.’

LondonMetric was advised by LSH, while the vendor was advised by CBRE.

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Outlook 2016: Europe & UK
Date Nov 24, 2015
Time 08:00 - 10:30
Location TH Real Estate, 201 Bishopsgate
London EC2M 3AE, UK

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