LondonMetric Property has acquired the Oak Furniture Land Distribution Centre in South Marston Park, Swindon from IM Properties, a privately owned property company.

LondonMetric Property has acquired the Oak Furniture Land Distribution Centre in South Marston Park, Swindon from IM Properties, a privately owned property company.

The purchase price is £22 mln (€26 mln) net of acquisition costs, reflecting a net initial yield of 6.5%.

The asset comprises a 302,000 sq ft (28,000 m2) warehouse developed in 2006 with an unimplemented planning consent for a further 150,000 sq ft of distribution space. The unexpired lease term is 13.6 years (8.6 years to first break).

The warehouse is Oak Furniture Land’s National Distribution Centre catering for its online business and its 50 out-of- town stores.

Following this acquisition, LondonMetric’s distribution portfolio comprises 13 distribution centres with a combined value of £316.1 mln, representing 28% of the enlarged group’s portfolio.

'We have acquired £112 mln of high-quality distribution centres since the half-year end, increasing our weighting by value from 20% to 28%,' said Andrew Jones, Chief Executive of LondonMetric. 'These assets are prime distribution real estate generating good income and many also offer significant asset management opportunities which draw on our property expertise and deep occupier relationships.'

Over the next 12 months, the company will extend the Swindon asset by 150,000 sq ft, effectively increasing the yield on cost to over 7%, he added.

CBRE advised LondonMetric and Cushman & Wakefield advised IM Properties.