Three Distribution Warehouses Acquired for £22m

RNS Number : 3953S

LondonMetric Property PLC

17 March 2016

 

17 March 2016                         

LONDONMETRIC PROPERTY PLC

LONDONMETRIC ACQUIRES THREE DISTRIBUTION

WAREHOUSES FOR £22 MILLION

LondonMetric Property Plc ("LondonMetric" or the "Company") announces that it has acquired three distribution warehouses for £21.8 million, totalling 212,600 sq ft and reflecting a NIY of 6.6%, which contractually rises to 6.9% within two years.

The warehouses are located in Castle Donington, Royston and Hemel Hempstead and are let to toy retailer Hamleys, Howdens and Goodrich respectively for a total rent of £1.5 million pa and an average WAULT of 12.4 years.

The acquisitions are from private vendors and will be funded from the Company's existing resources.

Separately, LondonMetric's joint venture with Universities Superannuation Scheme Ltd, the Metric Income Plus Limited Partnership, has sold its Wickes out of town retail unit in Nottingham for £5.2 million; NIY 6.4%. The property was acquired for £4.5 million in November 2012, reflecting a yield on cost of 7.4%.

Andrew Jones, Chief Executive of LondonMetric, commented:

‎"These acquisitions reflect our increasing investment into smaller logistic depots serving major conurbations, where there is growing demand for warehouse accommodation that can satisfy customers' next day delivery requirements.

"This particular segment of the distribution sector is experiencing strong demand/supply tension and delivering organic rental growth. We continue to see other opportunities, particularly off market, and will grow our investment within this area."

LondonMetric was advised on the acquisitions by CBRE, Dowley Turner Real Estate and David Baroukh Associates.

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For further information, please contact:

LondonMetric Property Plc

Andrew Jones / Martin McGann

Tel: [phone]

FTI Consulting

Dido Laurimore/Tom Gough/Claire 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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