International buyers pay £51m for South Yorkshire warehouses

Property firm, LondonMetric has sold a mega box warehouse and two regional distribution warehouses, in South Yorkshire. The sales which are two separate transactions have a combined value of £64.5 million.

In Doncaster it has sold two distribution assets to an overseas buyer for £51.2 million. They include a 330,000 sq ft mega warehouse let to Next for a further four years at a rent of £6.60 psf; and a 176,000 sq ft regional warehouse let to DFS for a further 10 years at a rent of £7.00 psf.

In Rotherham the business has sold a 152,000 sq ft regional distribution warehouse to a separate global investor for £13.3. The unit is currently let to the Royal Mail for a further eight years at a rent of £4.70 psf.

Andrew Jones, Chief Executive of LondonMetric, commented:
“We have taken the opportunity to respond to global investor demand for distribution warehousing to monetise some of our larger assets in geographies where we expect income growth to be more muted. The sales further improve the income diversification of our largest occupiers and provides headroom to invest further into urban logistics, which continues to offer superior income growth prospects.”