UK REIT LondonMetric Property has purchased a long let cold storage and logistics warehouse development for £53.4 mln (€64 mln).
The 300,000 sq ft (27,900 m2) building is pre-let on a 25 year lease to AM Fresh Group, an international agri-tech company that supplies the majority of UK supermarkets with a range of items including fruits, plant-based fresh goods and flowers. The rent of £2.0 mln per annum equates to an acquisition yield of 3.7% which is expected to rise to 4.3% at the next rent review.
The development is located at Alconbury Weald, Huntingdon, on the A1(M), and will be a highly specified cold storage, production and logistics warehouse used to supply fresh fruit to food retailers and wholesalers across the UK. The property will be fitted out with market leading robotics and automation and include an innovation centre and incubator for agri-tech R&D.
The building will be certified BREEAM Very Good and construction by AM Fresh has commenced, with completion expected in December 2022. LondonMetric will receive a funding coupon of 3.7% during the development.
Andrew Jones, Chief Executive of LondonMetric, commented: ‘This is a high quality development benefitting from a very long lease to a market leader in fresh produce and adding an exceptional building to our portfolio.’
BNP Paribas Real Estate advised AM Fresh and Cortex Partners advised LondonMetric.
