LondonMetric Property has completed the acquisition of CT Property Trust, increasing the value of its portfolio to £3.2bn.
The portfolio has average lease lengths of 11 years, occupancy of 99% and generates £160m of rental income a year. LondonMetric said that it had “attractive rental prospects given its high weighting to urban logistics which accounts for 44% of assets”.
It added that in addition to offering asset management opportunities and strong rental reversion potential, the acquisition of CTPT offered the business “material cost savings, economies of scale and an attractive debt structure, with the acquisition expected to be earnings accretive”.
Andrew Jones, chief executive of LondonMetric, said: “This opportunistic acquisition will benefit both sets of shareholders and provide greater liquidity. We will immediately begin to integrate the CTPT portfolio assets and work towards disposing of assets that are deemed non-core to our strategy.”
