Shortage of supply behind £23.9m property deals
DHL’s warehouse next to Coventry Airport has been bought as part of a £23.9m spending spree by LondonMetric Property.
The property group’s is looking to take advantage of what it sees as “an increasingly favourable demand/supply imbalance”.
Its acquisitions also include logistics warehouse in Crawley, West Sussex and Huyton, Merseyside.
Andrew Jones, chief executive of LondonMetric, said: “Over the last 12 months our urban logistics portfolio has grown substantially to £185m across 26 assets. We will continue to build on this critical mass as the sector benefits from an increasingly favourable demand/supply imbalance.
“Following these purchases, the proceeds of our recent equity raise have now been fully committed in line with our strategy, into attractive real estate that offers high occupier appeal, in strong locations with good reversionary potential.”
The Coventry warehouse is a 90,000 sq ft warehouse next to Coventry Airport and close to the A45/A46 junction.
It is let to DHL on a new 10-year lease at a rent of £4.75 per sq ft. There is a break clause and an open market rent review in five years.
LondonMetric was advised on the Coventry deal by Levy, while Lambert Smith Hampton acted for the vendors.
The Crawley acquisition also relies on proximity to an airport, with the 51,000 sq ft warehouse let to TNT being located close to Gatwick Airport.
The Huyton warehouse is a 120,000 sq ft facility, let to Antonlin Interiors on a 15-year lease.
The purchase price reflects a blended yield of 6.0% and a reversionary yield of 6.8%.
