LondonMetric Property buys M&S distribution centre in UK

LondonMetric Property has agreed to buy Marks & Spencer (M&S) Distribution Centre in Sheffield from CBRE Global Investors for 32.2m pounds.The purchase price reflects a net initial yield of 7.6% and will be funded from the UK property group's existing resources.The distribution centre comprises of two units and is located at the Sheffield International Rail Freight Terminal (SIRFT), near the M1 motorway. Following the acquisition, LondonMetric has 12 distribution centres with a combined value of £294m, representing 27% of the enlarged group's portfolio. The weighted average unexpired lease term across the distribution portfolio is 12.4 years and the portfolio is 99.5% occupied. Fixed rental uplifts across the distribution portfolio represent 41% of total distribution rental income. In the group's investment portfolio, fixed rental uplifts represent 33% of contracted rental income.RD