LondonMetric Property Plc has announced the acquisition of two urban logistics warehouses in Redditch and London for £13.2m, reflecting a blended net initial yield of 4.7%.
In Redditch, a newly developed 46,000sq ft urban warehouse has been acquired for £5.5m. It is let at a rent of £300,000 pa to Heartbeat Manufacturing, a leading manufacturer and distributor of retail display furniture innovations.
The BREEAM Very Good building is located on a new logistics park 2 miles from the town centre and close to the M42 / M40 junction.
In London, a 20,000sq ft urban warehouse has been acquired for £7.7m. It is let at a rent of £350,000 pa to Ford as a service and parts centre and has been comprehensively refurbished.
Andrew Jones, Chief Executive of LondonMetric, commented: “These are high quality urban logistics acquisitions let on long leases with guaranteed rental growth. They are well located, in good geographies where the underlying value of the land significantly underwrites the purchase price.”