LondonMetric Property has acquired six single let urban logistics properties for £78m from a FSTE 100 pension fund in an off-market deal.
The purchase price reflects a blended net initial yield of 5.8%, which rises to 6.9% over the next two years.
The portfolio generates income of £4.8m per annum, equating to an average rent of £9.20/sq ft, which is expected to rise to £5.8m per annum (£11.10/sq ft) over the next two years.
The 526,000 sq ft portfolio comprises six units located in Stafford, Banbury, Romford, Southampton, Bristol and Aberdeen, let to tenants including General Electric and Thales, with a WAULT of 10 years.
In a separate deal, LondonMetric has sold an office asset in Edinburgh let to HSBC for £6m.
Andrew Jones, chief executive of LondonMetric, said: “This was a very rare opportunity to acquire, off market, a high quality portfolio which is immediately earnings accretive. The well located, mission critical assets, offer an attractive mix of near term income growth and value-enhancing asset management opportunities. Logistics remains our strongest conviction thematic and now accounts for over 45% of our total portfolio.”
LondonMetric was advised on the portfolio acquisition by Cortex Partners and the seller was advised by Clay Street.
