UK REIT LondonMetric has announced a drive to raise around £97 mln (€112 mln) of capital to increase its exposure to 'last-mile' distribution assets.
The company said that the funds raised from placing up to 62,804,390 new ordinary shares would also go towards financing newly committed distribution schemes.
'Structural trends in consumer behaviour and shopping patterns are continuing to drive demand for distribution, from last mile facilities to mega sheds, but supply remains constrained. For those with market access and knowledge, investments in the sector are able to create long-term, reliable income,' commented Andrew Jones, LondonMetric's CEO.
'Our increased commitment to last mile acquisitions and short cycle distribution developments, together with a healthy pipeline of further opportunities, will support our plans to grow our distribution exposure to at least 70% within a year,' Jones added.
The company's plans for the capital include spending £42 mln (€50 mln) on distribution developments at Dagenham, Stoke and Crawley, totalling 560,000 m2 (52,000 m2), at an anticipated yield on cost of 6.2%.
Another £28 mln would go to fund recently completed distribution investments acquired at a net initial yield of 5.9% and a reversionary yield of 6.4%, while £30 mln (€32.5 mln) will target a pipeline of last mile and regional distribution investments.
LondonMetric said it expects to deploy around 75% of the net proceeds within six months, while the developments would come on line over the next 12 months.
J.P. Morgan Cazenove and Peel Hunt have been appointed joint bookrunners.
