LondonMetric Property (LondonMetric) has acquired a portfolio of 14 urban and regional logistic warehouses from Cabot Properties for £116.6m.
The 1.3m ft2 of warehouses are located in regions which have good motorway connectivity and strong occupier demand.
Of the 14 warehouses, 11 facilities serve as urban logistic warehouses, of which over half are situated in the South East and Midlands.
The acquired portfolio consists of a 5.6 year old wault, which is rented out for an average of £5.50 psf.
Retailers and third party logistics operators such as DHL, Howdens, Unipart and Royal Mail contribute over 60% of the £7.2m income.
The acquisition will boost the distribution weighting of LondonMetric to 69% and its LTV to 37%.
LondonMetric chief executive Andrew Jones said: “Following recent non-core disposals of Milford Haven, Loughborough and Marlow totalling £116.3m, we are pleased to have re-invested the sale proceeds into the distribution sector within such a quick timescale.
“The urban logistics market continues to benefit from a highly favourable demand/supply imbalance and this acquisition further increases our critical mass in this sub-sector to over £260 million across 38 assets. The acquired portfolio is fully income generating and offers good opportunities to extend lease lengths and capture strong income growth.”
LondonMetric, headquartered in the UK, is a FTSE 250 REIT property company which focuses on asset management initiatives and short cycle developments.
The company, which has 12.2m ft2 under management specializes in retailer – led distribution, convenience and out of town retail.
Cabot Properties, established in 1986 and headquartered in the US, is a private equity real estate investment firm and operated across North America and the UK.