(Alliance News) - LondonMetric Property PLC said on Tuesday it acquired a warehouse development in Huntingdon for GBP53.4 million.
The London-based property company said the property was a cold storage and logistics warehouse development currently on a 25-year lease to AM Fresh Group, an agri-technology company supplying UK supermarkets.
The rent of GBP2.0 million per annum equates to GBP6.70 per square foot and is subject to five-yearly consumer price index plus 1% linked reviews.
LondonMetric also said the acquisition yield was 3.7%, which is expected to rise to 4.3% at the next rent review.
Chief Executive Officer Andrew Jones commented: "This is a high quality development benefitting from a very long lease to a market leader in fresh produce and adding an exceptional building to our portfolio. We are excited about working in partnership with AM Fresh as we use our expertise to help deliver their new warehouse and build a long term relationship."
Shares in LondonMetric were up 0.5% at 270.13 pence on Tuesday morning in London.
By Heather Rydings; heatherrydings@alliancenews.com
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