LondonMetric buys long-let M&S logistics warehouse for PS74 million

LondonMetric Property PLC on Thursday said it has acquired a long-let Marks & Spencer Group PLC logistics warehouse for a total of £74.0 million.

The London-based real estate investment trust said the 390,000 square feet regional logistics warehouse is pre-let to M&S on a 20-year lease, with five yearly upward-only rent reviews linked to the consumer price index.

The purchase reflected a net initial yield of 5.65%.

Currently being developed by Epta Development Corp and partner Stoford, the warehouse is situated in Axis Works in Bristol, and will be a ‘key facility’ for M&S’ food distribution business, LondonMetric said.

Construction is expected to complete in summer 2026, and LondonMetric will receive a funding coupon of 5.5% during the development.

‘This is a high quality development let on a very long lease to one of the UK’s strongest retailers. It will deliver income longevity, certainty and guaranteed growth. It further extends our relationship with M&S and adds another exceptional building to LondonMetric’s portfolio,’ said LondonMetric Chief Executive Officer Andrew Jones.

Shares in LondonMetric were up 4.7% at 178.99 pence each in London on Thursday morning. The stock remains down 8.4% over the past year.

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