UK investor LondonMetric Property has acquired two logistics warehouses in the UK for £135.6 mln (€160 mln) in separate transactions.
The price reflects a blended net initial yield (NIY) of 4.2%, and a reversionary yield of 4.8%.
The properties generate a rent of £6.0 mln per annum (p.a.) with 100% of the income benefiting from RPI linked rent reviews. The warehouses have a weighted average unexpired lease term of 22 years.
The assets comprise a 700,000 ft2 (65,000 m2) property, acquired for £97 mln at a NIY of 4.0% and let to a high quality occupier for another 23 years at a rent of £4.1 mln p.a., reflecting a reversionary £6.00 per ft2, with the next review in three years.
The highly-automated warehouse sits adjacent to a key UK motorway junction on a premier logistics hub and has further development potential of up to 180,000 ft2.
The second asset, covering 296,000 ft2, was acquired for £38.6 mln at a NIY of 4.5% and pre-let to an e-commerce company, on a 20 year lease at a rent of £1.9 mln p.a., equating to £6.25 per ft2.
The warehouse is located at Port One Logistics Park, Ipswich, and will be used by the occupier to import and distribute products. Development completes in spring 2022.
The buildings are highly specified and certified BREEAM Very Good.
Andrew Jones, chief executive of LondonMetric, commented: 'These are excellent buildings, in strong locations and offer attractive opportunities to capture guaranteed rental reversions.
'These investments quickly follow on from the recent sale of our Primark mega logistics warehouse where the delayed completion on that transaction means that we will continue to collect the income until February next year.'
