LondonMetric said it had bought two London warehouses for £13.5m which will be converted into “dark kitchens” serving the food delivery market.
The company on Friday said it had agreed a new 20 year lease with Jacuna Kitchens across 75% of the combined space. Jacuna will operate 100 kitchens across both locations in Brent Cross and Streatham.
LondonMetric will refurbish and upgrade the warehouses to provide enhanced power, ventilation and drainage to the buildings.
Also known as “ghost kitchens” the facilities have no sitting capacity for diners and focus only on delivery, preparing food once an order comes in through a delivery app or an online order. Some also offer takeaway for collection by customers.
Letting of the remaining space is under negotiations with a new delivery start up, the company said. Following completion of the letting and refurbishment, LondonMetric expects to deliver a blended yield on cost of 5.4% from the deal.
“We are excited by the dark kitchen sector and are pleased to be able to work with Jacuna on acquiring these warehouses and upgrading the facilities to their requirements. We are working with them on the rollout of further dark kitchen facilities across London,” said chief executive Andrew Jones.
