UK industrial REIT LondonMetric Property has acquired two warehouses in Milton Keynes for £31.2 mln, reflecting a blended net initial yield of 4.4% and a reversionary yield of 5.0%.
The buildings have a weighted average unexpired lease term of 22 years and benefit from contractual rental uplifts.
Andrew Jones, chief executive of LondonMetric, said: 'Following our recently announced disposal of long let NNN retail assets, we are pleased to have quickly redeployed the proceeds into two high quality acquisitions let on very long leases with guaranteed rental growth.
'These assets are very well located in attractive urban geographies with strong infrastructure characteristics and provide high occupier contentment.'
The two properties have been acquired in separate transactions and include a 66,000 ft2 (6,130 m2) unit, let to TalkTalk as a data centre, which was acquired for £23.9 mln. It is let for a further 26 years term certain and benefits from annual RPI linked rent reviews of between 2-4%.
The property is strategically located one mile from the centre of Milton Keynes, LondonMetric said, and features a very low site density of 29% plus excellent data and power connectivity. The occupier has invested significantly into the building.
The second property comprises a 42,000 ft2 urban logistics warehouse, acquired for £7.3 mln. It is let on a new 10 year lease and benefits from annual rent reviews at the higher of open market value or retail price index, between 2% to 5%. The building is located three miles from the centre of Milton Keynes and has a very low site density of 27%.
LondonMetric was advised by Knight Frank on the larger unit and by Allsop on the second building.
OLIM Property Limited, seller of the larger unit on behalf of a discretionary investment management client, was advised by JLL.
