LondonMetric Property has completed the acquisition of a logistics unit let to Next in Doncaster for £21.2m, in a deal reflecting a NIY of 6.3%.
The 264,000 sq ft warehouse is let to the retailer for a further 13 years at a rent of £1.42m per annum – £5.37/sq ft. The lease includes annual fixed rental uplifts of 2.5%, which will increase the purchase NIY to 7.1% within three years.
LondonMetric has also sold an 18,000 sq ft office in Chiswick for £7.4m to an undisclosed purchaser. The multi-let office is 59% occupied with a WAULT of 1.5 years.
Andrew Jones (pictured), chief executive of LondonMetric, said: “As the UK economy reaches an inflection point on both inflation and interest rates, we are increasingly attracted to triple net leased assets that have strong income compounding characteristics and certainty of growth. We have continued to successfully exit non-core assets and reinvest into sectors that benefit from structural tailwinds. We have now, based on purchase value, disposed of 39% of the Mucklow portfolio.”
LondonMetric was advised by GV & Co on the Doncaster acquisition.
