LondonMetric Property has acquired a Marks & Spencer logistics warehouse at Axis Works in Bristol for £74m in a deal reflecting a net initial yield of 5.65%.
The 390,000 sq ft regional logistics warehouse, which it bought from Epta Development Corporation (EDC) and its development partner Stoford, is pre-let to M&S on a 20-year lease with five-yearly upward only rent reviews linked to CPI.
The BREEAM Excellent-rated building is expected to complete in summer 2026 and LondonMetric will receive a funding coupon of 5.5% during the development.
Located at Central Park, Avonmouth, Axis Works spans 101 acres and has hybrid planning consent for circa 2m sq ft of new industrial, warehouse, and logistics space.
Andrew Jones, chief executive of LondonMetric, said: “This is a high quality development let on a very long lease to one of the UK’s strongest retailers. It will deliver income longevity, certainty and guaranteed growth. It further extends our relationship with M&S and adds another exceptional building to LondonMetric’s portfolio.”
Alex Freudmann, managing director of M&S Food, added: “Modernising our supply chain is key to increasing the capacity in our network and will help us get ahead of the volume curve we are driving in M&S Food to meet our ambition of becoming a shopping list retailer. This new site will ensure that we’re getting the right products to the right stores at the right time for our customers. It will also create a great working environment for our colleagues.”
Chris Tsakumis, principal at EDC, said: “We are pleased to have invested in the site and our long-term UK investment strategy has reaped initial dividends with the announcement of our first occupier and investment sale. We look forward to making further positive announcements in the near future.”
Dan Gallagher, joint managing director at Stoford, added: “We’ve been working on this opportunity alongside EDC for the last two years and are delighted to see it come to fruition. We have already made a significant investment in site infrastructure and look forward to delivering a state-of-the-art logistics facility in one of the UK’s most sought-after distribution locations.”
CBRE and Knight Frank acted for EDC and Stoford and Lambert Smith Hampton represented M&S.
