(Alliance News) - LondonMetric Property PLC on Tuesday said it has bought two urban logistics warehouses in Manchester and Birmingham for GBP39 million.
The FTSE 250-listed property company stated the sale price represents a blended yield on cost of 4.3%, adding they are let for 15 years at an average rent of GBP6.60 per square foot and benefit from RPI-linked rent reviews.
LondonMetric stated the 137,000 square-feet warehouse in Manchester was acquired for GBP20.5 million, noting the property is pre-let at a rent of GBP900,000 per annum to home lighting retailer LSE Group Holdings. The 122,000 square-feet warehouse in Birmingham was acquired for GBP18.1 million, let at a rent of GBP800,000 per year to industrial service provider ERIKS.
"These newly built warehouses are fully income generating, well located and let on long leases to established and growing occupiers. They provide guaranteed rental growth, will further improve the quality of our portfolio and allow us to extend both existing and new occupier relationships," said Chief Executive Andrew Jones.
Shares in LondonMetric were trading flat at 231.00 pence each on Tuesday morning in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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