LondonMetric Property PLC ACQUISITION OF LOGISTICS PORTFOLIO FOR £116.6M (5870N)
10 August 2017 - 4:01PM
UK Regulatory
TIDMLMP
RNS Number : 5870N
LondonMetric Property PLC
10 August 2017
10 August 2017
LONDONMETRIC PROPERTY PLC
LONDONMETRIC ACQUIRES portfolio of
14 logistics warehouses for GBP116.60 million
LondonMetric Property Plc ("LondonMetric") announces the
acquisition of 14 urban and regional logistic warehouses for
GBP116.60 million from Cabot Properties ("Portfolio"). The purchase
price reflects a day one yield on cost of 6.1% and a reversionary
yield of 6.6%.
The 1.3 million sq ft of warehouses are in established
distribution locations where there is excellent motorway
connectivity and strong occupier demand. 11 of the 14 buildings are
"last mile"/urban logistic warehouses and over half are located in
the South East and Midlands.
The Portfolio has a WAULT of 5.6 years and is let at a low
average rent of GBP5.50 psf (ERV of GBP6.00 psf). Over 60% of the
GBP7.2 million income is from retailers and third party logistics
operators including DHL, Howdens, Unipart and Royal Mail.
This acquisition increases LondonMetric's distribution weighting
to 69%(1) and LTV to 37%(1,2) .
Andrew Jones, Chief Executive of LondonMetric, commented:
"Following recent non-core disposals of Milford Haven,
Loughborough and Marlow totalling GBP116.3m, 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 GBP260
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 was advised by JLL. Accord Capital Partners LLC,
along with its affiliate, Accord Europe Limited, served as
exclusive global capital advisor to Cabot Properties.
An updated portfolio breakdown can be found at
www.londonmetric.com/investors/reports-and-presentations.
(1) Assuming completion of the Portfolio, expected in August,
and Marlow and Loughborough disposals.
(2) Based on net debt as at 30 June 2017 and valuations as at 31
March 2017, adjusted for subsequent investment activity.
-Ends-
For further information, please contact:
LondonMetric Property Plc
Andrew Jones / Martin McGann
Tel: +44 (0) 20 7484 9000
FTI Consulting
Dido Laurimore / Tom Gough / Richard Gotla
Tel: +44 (0)20 3727 1000
About LondonMetric Property Plc
LondonMetric is a FTSE 250 REIT (ticker: LMP) that specialises
in retailer-led distribution, convenience and out of town retail
with a focus on strong and growing income and adding value through
asset management initiatives and short cycle developments.
LondonMetric has 12.2 million sq ft under management and a high
proportion of its assets are in retailer-led distribution. Further
information on LondonMetric is available at
www.londonmetric.com
About Cabot Properties Inc.
Cabot Properties is a private equity real estate investment
firm. The firm is a leading investor, developer and operator of
industrial properties throughout North America and the United
Kingdom. Formed in 1986, Cabot has invested $7.6 billion in
industrial real estate, managing and operating approximately 3,500
tenants in 164 million square feet. More information on Cabot
Properties is available at www.cabotprop.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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