Portfolio of “last mile” warehouses bought for £116.6m
Property investor LondonMetric Property has bought a portfolio of 14 warehouses across the UK for £116.6m.
The Cabot Properties sites total 1.3m sq ft of logistics space, with 11 of the warehouses focusing on “last mile” deliveries.
The deal with Cabot Properties has enabled LondonMetric to reinvest the proceeds from recent non-core disposals at Milford Haven, Loughborough and Marlow.
Andrew Jones, chief executive of LondonMetric, said: “The urban logistics market continues to benefit from a highly favourable demand/supply imbalance and this acquisition further increases our critical mass in this sub-sector to over £260m across 38 assets.
“The acquired portfolio is fully income generating and offers good opportunities to extend lease lengths and capture strong income growth.”
The portfolio has rental income of £7.2m with the deal price representing a 6.6% yield.
The largest individual site is a 274,000 sq ft warehouse in Bolton. The portfolio contains two other North West sites, both in Warrington which together total 71,000 sq ft.
Four of the properties are in Yorkshire, including the Menzies distribution centre in Wakefield along with two warehouses in Doncaster and one in Sheffield.
The Midlands sites include DHL’s 142,000 sq ft centre in Solihull, a 128,000 sq ft warehouse in Ashby-de-la-Zouch, and an 82,000 sq ft site in Coventry.