18 November 2015
LONDONMETRIC PROPERTY PLC
LONDONMETRIC ACQUIRES DHL
DISTRIBUTION
WAREHOUSE, READING FOR £29
MILLION
LondonMetric Property Plc
("LondonMetric" or the "Company") announces that it has acquired a
230,000 sq ft distribution warehouse for £28.8 million, reflecting
a NIY of 5.8% and an equivalent yield of 6.4%.
The warehouse is situated in a prime
distribution location on a 11.5 acre site in Reading, next to
Junction 11 of the M4, and in close proximity to Tesco's 1 million
sq ft regional hub. Other companies nearby include Royal Mail and
Proctor & Gamble.
The building is let to DHL for a
further 10 years at a rent of £1.8 million pa, equating to £7.73
psf, with an open market rent review due in July 2020.
The acquisition is from a private
vendor and will be funded from the Company's existing
resources.
Andrew Jones, Chief Executive of
LondonMetric, commented:
"This acquisition is in line with our strategy of
acquiring well located distribution assets that will generate real
and sustainable income growth. The sector continues to benefit from
growing demand/supply tension which will allow us to capture an
increasing reversion over the next few years."
LondonMetric was advised by LSH and
the vendor was advised by CBRE.
-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/Clare Glynn
Tel: +44 (0) 20 3727 1000
About LondonMetric Property
Plc
LondonMetric (ticker: LMP) aims to deliver attractive
returns for shareholders through a strategy of increasing income
and improving capital values. It invests across the UK in retail
led distribution, out of town and convenience retail properties. It
employs an occupier-led approach to property with a focus on strong
income, asset management initiatives and short cycle development.
The portfolio is comprised of mainly distribution warehouses and
retail parks with a total of 11 million sq ft under management.
LondonMetric works closely with retailers, logistics providers and
leisure operators to help meet their evolving real estate
requirements.
Further information on LondonMetric is available at
www.londonmetric.com