ACQUISITION OF WAREHOUSE DEVELOPMENT FOR £24M

RNS Number : 4085J

LondonMetric Property PLC

19 August 2019

 

19 August 2019

LONDONMETRIC PROPERTY PLC

LONDONMETRIC TO PURCHASE AND FUND A PRE-LET

DISTRIBUTION WAREHOUSE DEVELOPMENT FOR £24 MILLION

LondonMetric Property Plc ("LondonMetric") announces that it has agreed to purchase and fund a new 232,000 sq ft distribution warehouse for £24.0 million, reflecting a yield on cost of 5.2%.

The warehouse has been pre-let to Croda, a FTSE 100 speciality chemical company, on a 20 year lease at a rent of £1.3 million pa subject to annually payable RPI linked rental uplifts of between 1% and 3% pa.

Located adjacent to Junction 36 of the M62, Croda will use the warehouse as its global distribution hub and will invest a significant amount in a state-of-the-art automated facility. The 33 acre site will have a very low site density of 16% and there is planning consent for approximately 140,000 sq ft of additional development.

Construction commences imminently and is expected to complete in mid-2020. LondonMetric will forward fund the developer, db symmetry, benefiting from a 5.2% funding coupon.

Andrew Jones, Chief Executive of LondonMetric, commented:

"In this ongoing low interest rate environment, we continue to be attracted to sustainable real estate which can deliver reliable, repetitive and growing income returns.

"This latest distribution investment is let to a high quality occupier who is an existing customer of ours. It benefits from a very long lease at an attractive yield that is inflation linked and will further improve the quality of our portfolio as well as offer further occupier-led development potential."

For further information, please contact:

LondonMetric Property Plc

Andrew Jones / Martin McGann

Tel: [phone]

FTI Consulting

Dido Laurimore / Richard Gotla

Tel: [phone]          

About LondonMetric Property Plc

LondonMetric is a FTSE 250 REIT that owns one of the UK's leading listed logistics platforms alongside a diversified long income portfolio. It owns and manages desirable real estate that meets occupiers' demands, delivers reliable, repetitive and growing income-led returns and outperforms over the long term. LondonMetric has 16 million sq ft under management.  

Further information is available at www.londonmetric.com

 

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