Acquisition

RNS Number : 0711G

LondonMetric Property PLC

18 November 2015

 

18 November 2015

LONDONMETRIC PROPERTY PLC

LONDONMETRIC ACQUIRES DHL DISTRIBUTION

WAREHOUSE, READING FOR £29 MILLION

LondonMetric Property Plc ("LondonMetric" or the "Company") announces that it has acquired a 230,000 sq ft distribution warehouse for £28.8 million, reflecting a NIY of 5.8% and an equivalent yield of 6.4%.

The warehouse is situated in a prime distribution location on a 11.5 acre site in Reading, next to Junction 11 of the M4, and in close proximity to Tesco's 1 million sq ft regional hub. Other companies nearby include Royal Mail and Proctor & Gamble.

The building is let to DHL for a further 10 years at a rent of £1.8 million pa, equating to £7.73 psf, with an open market rent review due in July 2020.

The acquisition is from a private vendor and will be funded from the Company's existing resources.

Andrew Jones, Chief Executive of LondonMetric, commented:

‎"This acquisition is in line with our strategy of acquiring well located distribution assets that will generate real and sustainable income growth. The sector continues to benefit from growing demand/supply tension which will allow us to capture an increasing reversion over the next few years."

LondonMetric was advised by LSH and the vendor was advised by CBRE.

-Ends-

For further information, please contact:

LondonMetric Property Plc

Andrew Jones / Martin McGann

Tel: [phone]

FTI Consulting

Dido Laurimore/Tom Gough/Clare Glynn

Tel: [phone]

About LondonMetric Property Plc

LondonMetric (ticker: LMP) aims to deliver attractive returns for shareholders through a strategy of increasing income and improving capital values. It invests across the UK in retail led distribution, out of town and convenience retail properties. It employs an occupier-led approach to property with a focus on strong income, asset management initiatives and short cycle development. The portfolio is comprised of mainly distribution warehouses and retail parks with a total of 11 million sq ft under management. LondonMetric works closely with retailers, logistics providers and leisure operators to help meet their evolving real estate requirements.  

Further information on LondonMetric is available at www.londonmetric.com

 

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