Midlands property firm sells distribution warehouse for £22m

COLESHILL-based IM Properties has sold the Oak Furniture Land distribution centre in Swindon to LondonMetric Property for £22m.

The deal reflects a net initial yield of 6.5%.
 
The 302,000 sq ft warehouse was built in 2006 and has planning consent for a further 150,000 sq ft of distribution space. The unexpired lease term is 13.6 years (8.6 years to the first break).
 
The warehouse is Oak Furniture Land’s national distribution centre, catering for its online business and its 50 out of town stores.
 
Following this acquisition, London-based LondonMetric’s distribution portfolio comprises 13 distribution centres with a combined value of £316.1m.
 
Andrew Jones, chief executive of LondonMetric, said: “We already have a good relationship with Oak Furniture Land and will support their evolving requirements by looking to implement the 150,000 sq ft extension over the next 12 months, which will increase our yield on cost to over 7.0%.”
 
CBRE advised LondonMetric and Cushman & Wakefield advised IM Properties.