LONDON, UK: LondonMetric Property Plc announced the acquisition of an urban logistics warehouse in Luton from Marcol Industrial Investments for £15.5 million.
The 168,000 sq ft property is located on Luton Enterprise Park, close to Luton town centre and J11A of the M1. It is let to two occupiers with a WAULT of three years. The rent of £0.7 million p.a. equates to a very low £4.20 psf, reflecting a NIY of 4.3% which rises to 5.9% based on ERV.
The property offers significant potential for redevelopment, which LondonMetric will look to progress on expiry of leases.
Andrew Jones, Chief Executive of LondonMetric, commented: “We continue to grow our urban logistics portfolio with quality acquisitions and this latest transaction is an excellent covered land opportunity in a very strong location offering significant rental reversion as well as attractive future redevelopment potential.”
LondonMetric was advised by Adroit and Knight Frank. The seller was advised by Savills.
LondonMetric is a FTSE 250 REIT that owns one of the UK’s leading listed logistics platforms alongside a grocery-led 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.