UK industrial REIT LondonMetric Property has acquired two urban logistics warehouses in the UK for a total of £39 mln (€44 mln).
The deal for the properties, located in Manchester and Birmingham, reflected a blended yield on cost of 4.25%. The newly built warehouses are let for 15 years at an average rent of £6.60 per ft2, and benefit from RPI linked rent reviews, according to the firm.
In Manchester, LondonMetric acquired a 137,000 ft2 (12,730 m2) urban warehouse for £20.5 mln from Marshall CDP, a commercial development and construction company. It is pre-let at a rent of £0.9 mln p.a. to LSE Group Holdings, an online retailer of home lighting.
The occupier is upsizing its operations into the warehouse which will also act as its headquarters. The building has a low site density of 32% and is located between the M60 and M6 on the established Northbank Industrial Park.
In Birmingham, a recently completed 122,000 ft2 urban warehouse has been acquired for £18.1 mln, from Opus Land, a West Midlands based property development company backed by Fiera Real Estate. The asset is let at a rent of £0.8 mln pa to Eriks, an international industrial service provider.
The occupier is consolidating its operations into the warehouse which will act as its UK headquarters. The building is located in Oldbury, close to J2 of the M5.
The warehouses are highly specified and have been built to a Breeam Very Good standard, LondonMetric said.
Andrew Jones, chief executive of LondonMetric, said: 'Our strong relationships have allowed us to secure two additional high quality assets. These newly built warehouses are fully income generating, well located and let on long leases to established and growing occupiers.
'They provide guaranteed rental growth, will further improve the quality of our portfolio and allow us to extend both existing and new occupier relationships.'
