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LondonMetric Property acquires five urban logistics warehouses

LBR Staff Writer Published 09 April 2018

LondonMetric Property, a UK REIT investing across the UK in retail and convenience retail and long income properties, has acquired five urban logistics warehouse facilities for £25.6m.

With an average lease length of 16 years, the facilities are situated in Leyton, Weybridge, Peterborough, Cheltenham and Haverhill with occupiers such as Clipper Logistics, FedEx and Tesla.

The company has also sold a 290,000ft² warehouse in Doncaster for £15m. The facility, which was acquired by LondonMetric in 2014 for £13m, was leased to Superdrug.

The facility is let for a further 8 years with three years to break.

With 12 million ft² of space under management, LondonMetric works with a range of stakeholders such as occupiers, developers, land owners, agents, planning authorities and other public bodies, communities, contractors, joint venture partners, shareholders and debt providers.

LondonMetric chief executive Andrew Jones said: “The investment market for logistics assets continues to enjoy strong structural support.

“We have therefore decided to monetise one of our oldest and shortest let regional assets to allow us to focus on growing our urban logistics portfolio, which offers greater certainty of occupation, income and future valuation growth.

 “These new investments meet our objective of owning long let assets in strong locations that offer excellent potential for income growth.”

In December 2017, LondonMetric Property acquired two logistics warehouses for £47.6m. The average lease length is more than 18 years.

At Ollerton in Nottinghamshire, the property firm agreed to acquire a 364,000ft² regional warehouse let to Clipper Logistics on a 20-year lease.

At Speke, LondonMetric purchased a new 132,000ft² regional logistics warehouse let to logistics firm Gefco, on a new 15-year lease.

In early October, the company acquired a 40acre Bedford Link site from local authority. The site is located near junction 13 of the M1 and is next to Marsh Leys Business Park.

Image: LondonMetric Property has acquired five urban logistics warehouse facilities. Photo: courtesy of adamr / FreeDigitalPhotos.net.