TOP NEWS: LondonMetric buys urban logistics portfolio
LondonMetric Property PLC on Wednesday said it is buying six single let urban logistics properties from a FTSE 100 pension fund.
The London-based real estate investor said the purchase price of £78.0 million reflects a blended net initial yield of 5.8% which rises to 6.9% over the next two years.
Chief Executive Officer Andrew Jones said: ‘This was a very rare opportunity to acquire, off market, a high quality portfolio which is immediately earnings accretive.
‘The well located, mission critical assets, offer an attractive mix of near term income growth and value-enhancing asset management opportunities. Logistics remains our strongest conviction thematic and now accounts for over 45% of our total portfolio.’
The portfolio generates income of £4.8 million per year with an average rent of £9.2 per square foot. LondonMetric expects this to rise by 21% to £5.8 million and £11.10 per square foot over the next two years.
Separately, the company announced it sold a further office asset in Edinburgh for £6.0 million.
LondonMetric shares were 0.2% higher at 206.00 pence each on Wednesday morning in London.
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