Property investors acquire £18m warehouses
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PROPERTY company LondonMetric has acquired two warehouses, one in Hull, for £18m.
The warehouses were acquired through the Metric Income Plus Limited Partnership, a joint venture with Universities Superannuation Scheme Ltd.
The JV has acquired a B&Q warehouse in Hull and a Wickes warehouse in Dartford for a total cost of £18.4m, reflecting a blended net initial yield of 6.8%.
Stobart Group and Roebuck Asset Management has sold the 71,000 sq ft B&Q store in Hull for £9.4m. The unit is let at £750,000 with an unexpired lease term of 12 years.
The 40,000 sq ft Wickes retail warehouse in Dartford has been bought from a private investor at £9m.
MIPP was advised by Knight Frank on both deals and also by Beaton Associates on Dartford. Edgerley Simpson Howe represented Stobart and Roebuck.
Andrew Jones, chief executive of LondonMetric, commented: “These are two strong income producing assets, let off an average lease term of over 15 years, generating an income return on equity in excess of 10%.
“Both assets trade well and these transactions demonstrate our strong occupier relationships to source attractive off-market opportunities, in both the retail and logistics sector.”
Graham Burnett, head of property at USS, said: “These are attractive acquisitions by LondonMetric on behalf of MIPP which continues to be a successful joint venture for the scheme and its members.”