(Alliance News) - LondonMetric Property PLC said on Wednesday that it has acquired a property for GBP15.5 million from London-based investment company Marcol Industrial Investments LLP.
The building is a 168,000 square foot urban logistics warehouse in Luton, just north of London. It is currently let to two occupiers with a weighted average unexpired lease term of three years.
The London-based real estate owner and manager explained that the warehouse has rent of GBP700,000 per year which equates to a very low GBP4.20 price per square foot. This, the company continued, reflected a net yield of 4.3% which rises to 5.9% based on estimated rental value.
LondonMetric said the property offers significant redevelopment potential.
Chief Executive Andrew Jones said: "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."
Shares in LondonMetric were up 1.8% at 263.80 pence on Wednesday morning in London.
By Heather Rydings; heatherrydings@alliancenews.com
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