LondonMetric Property PLC GBP44M PURCHASE OF LONDON URBAN LOGISTICS WAREHOUSE (0619Z)
May 19 2021 - 01:00AM
UK Regulatory
TIDMLMP
RNS Number : 0619Z
LondonMetric Property PLC
19 May 2021
19 May 2021
LONDONMETRIC PROPERTY PLC
SALE & LEASEBACK ACQUISITION OF an urban LOGISTICS
warehouse in london for GBP44 million
LondonMetric Property Plc ("LondonMetric") announces the
acquisition of a well located urban logistics warehouse in Waltham
Cross for GBP43.8 million through a sale and lease back
transaction.
The 115,000 sq ft warehouse is let to Reynolds, a national
foodservice business, on a new 23 year lease with the benefit of
CPI+1 linked rent reviews of between 2-4%. The building is located
in a highly established logistics area of Enfield adjacent to the
M25, less than a five minute drive from Junction 25. It occupies a
5.6 acre site and has a site cover of 41%, which is low for a
London location.
The property generates a rent of GBP1.6 million per annum which
is just under 10% below market rent. There are no lease incentives
as part of the sale and leaseback and the contractual rent reviews
will increase the purchase net initial yield from 3.5% to an
expected 4.0% after five years.
The purchase price is nearly 100% underwritten by the residual
value of the land which reflects the very strong geography of the
asset. Following the acquisition, LondonMetric's urban logistics
portfolio's weighting towards London and the South East has
increased to over 50%.
Andrew Jones, Chief Executive of LondonMetric, commented:
"We are pleased to be able to redeploy recent sales receipts
into such a high quality, well located asset offering the certainty
of excellent income growth with the comfort of a high intrinsic
site value.
"Assets of this quality seldom become available and we look
forward to building on our relationship with Reynolds and welcome
them as one of our key customers."
Stonehill Partners acted for LondonMetric and Strettons acted
for Reynolds.
For further information, please contact:
LondonMetric Property Plc
Andrew Jones / Martin McGann / Gareth Price
Tel: +44 (0) 20 7484 9000
FTI Consulting
Dido Laurimore / Richard Gotla / Andrew Davis
Tel: +44 (0)20 3727 1000
About LondonMetric Property Plc
LondonMetric is a FTSE 250 REIT that owns one of the UK's
leading listed logistics platforms alongside a diversified long
income portfolio, with 16 million sq ft under management. It owns
and manages desirable real estate that meets occupiers' demands,
delivers reliable, repetitive and growing income-led returns and
outperforms over the long term.
Further information is available at www.londonmetric.com
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END
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