(Alliance News) - LondonMetric Property PLC on Wednesday announced it has acquired two urban logistics warehouses in London and in Redditch, Worcestershire for GBP13.2 million.
The FTSE 250-listed real estate investment trust focused on urban logistics said the two warehouses are let for 15 years and reflect a blended net initial yield of 4.7%.
LondonMetric said the 20,000 square feet London warehouse located in Alperton was acquired for GBP7.7 million and is let at a rent of GBP350,000 per annum to Ford Motor Co as a service and parts centre.
The 46,000 square feet Redditch warehouse was acquired for GBP5.5 million and is let at a rent of GBP300,000 per annum to manufacturer and distributor of display innovations Heartbeat Manufacturing Ltd.
"These are high-quality urban logistics acquisitions let on long leases with guaranteed rental growth. They are well located, in good geographies where the underlying value of the land significantly underwrites the purchase price," said Chief Executive Andrew Jones.
Shares in LondonMetric were up 1.3% at 230.80 pence in London on Wednesday.
By Zoe Wickens; zoewickens@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.