LondonMetric Property has bought three urban logistics warehouses for £18.7m.
The company said on Friday that the acquisitions of the warehouses in Croydon, Dunstable and Warrington, reflect a blended net initial yield of 4.3%. The warehouses have been bought in separate transactions and have a weighted average unexpired lease term (WAULT) of five years.
The urban warehouse in Croydon was bought for £5.3m and is let to HTC Group for a further four years at a rent of £9.00 per square foot. The Dunstable warehouse, which is let to Deralam Laminates for a further four years at a rent of £7.00 psf, was acquired for £3.0 million. The warehouse bought in Warrington for £10.4m is let mainly to IKEA with a WAULT of six years at an average rent of £6.60 psf.
Chief executive Andrew Jones said: “Through high quality acquisitions, we continue to grow our urban logistics portfolio which now totals £1.0billion. These purchases are very well located with high residual values, offering attractive yields and strong rental growth prospects through open market reviews and/or re-let opportunities.”
