URBAN LOGISTICS ACQUISITIONS & WAREHOUSE DISPOSAL

RNS Number : 0365K

LondonMetric Property PLC

06 April 2018

 

6 April 2018

LONDONMETRIC PROPERTY PLC

ACQUISITION OF five urban LOGISTICS warehouses AND

DISPOSAL OF A REGIONAL LOGISTICS WAREHOUSE

LondonMetric Property Plc ("LondonMetric") announces the acquisition of five urban logistics warehouses for £25.6 million, and the disposal of a regional warehouse in Doncaster for £15.0 million.

The five urban logistics warehouses have been assembled for a combined total of £25.6 million, reflecting a blended NIY of 5.0% which rises to 5.6% over the next five years. The assets have an average lease length of 16 years, with 67% of the income subject to contractual rental uplifts. They are well located in Leyton, Weybridge, Peterborough, Cheltenham and Haverhill with occupiers including Clipper Logistics, FedEx and Tesla.

In Doncaster, a 290,000 sq ft regional warehouse let to Superdrug has been sold for £15.0 million reflecting a NIY of 6.2%.  The building is let for a further 8 years with 3 years to break. It was acquired by LondonMetric in 2014 for £13 million, at a NIY of 7.3% and has generated an ungeared IRR of 10% pa.

Andrew Jones, Chief Executive of LondonMetric, commented:

"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."

For further information, please contact:

LondonMetric Property Plc

Andrew Jones / Martin McGann

Tel: [phone]

FTI Consulting

Dido Laurimore / Tom Gough / Richard Gotla

Tel: [phone]

About LondonMetric Property Plc

LondonMetric is a FTSE 250 REIT (ticker: LMP) that specialises in distribution, convenience and long income property. It focuses on strong and growing income and adding value through asset management initiatives and short cycle developments. LondonMetric has 12 million sq ft under management. Further information is available at www.londonmetric.com

 

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