LondonMetric Property Buys Logistics Warehouses For £135.6 Mln - Quick Facts

LondonMetric Property Plc (LMP.L) announced Monday the acquisition of two logistics warehouses for 135.6 million pounds in separate transactions.

The deal reflects a blended NIY of 4.2 percent and a reversionary yield of 4.8 percent.

The acquiring properties generate a rent of 6.0 million pounds p.a. with 100 percent of the income benefiting from RPI linked rent reviews. The warehouses have a WAULT of 22 years.

The company acquired around 700,000 sq ft warehouse for 97.0 million pounds at a NIY of 4.0 percent and let to a high quality occupier for another 23 years at a rent of 4.1 million pounds p.a. It has further development potential of up to 180,000 sq ft. Completion of the c.700,000 sq ft acquisition is expected to occur in January 2022.

Further, the company acquired 296,000 sq ft warehouse for 38.6 million pounds at a NIY of 4.5 percent and pre-let to a rapidly expanding e-commerce company, on a 20 year lease at a rent of 1.9 million pounds p.a. The warehouse's development will be completed in spring 2022.

Andrew Jones, Chief Executive of LondonMetric, said, "These investments quickly follow on from the recent sale of our Primark mega logistics warehouse where the delayed completion on that transaction means that we will continue to collect the income until February next year."

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