LondonMetric Property has announced the purchase of 10 single-let properties in the UK for £55 mln (€63 mln) from the ACT Foundation.
The purchase price reflects a day one blended net initial yield of 4.4% and a reversionary yield of 5.3%.
The portfolio consists of nine urban logistics assets totalling 340,000 sq ft (32,000 m2) and a retail store let to Wickes for a further 14 years. The assets are in established distribution locations and approximately 50% are located in London and the South East with a further 35% located in the Midlands.
The portfolio has a weighted average unexpired lease term of nine years which is expected to rise to 12 years on anticipated regears. It generates income of £2.6 mln per annum and is let to tenants including Ceva Logistics, DSV, Jewson, Vodafone and Wickes.
Andrew Jones, Chief Executive of LondonMetric, commented: 'Following the recent disposal of six non core distribution assets for £36 mln, we are pleased to have re-allocated the proceeds into a much stronger and better located portfolio within such a quick timescale. The portfolio is fully income generating, offers good opportunities to capture strong income growth and increases our urban logistics portfolio to approximately £400 mln.'
LondonMetric was advised by JLL. The seller was advised by CBRE.