LondonMetric sells logistics warehouse for £24.4m

LondonMetric Property PLC has disposed of a Tesco logistics warehouse (pictured above) in Bolton for £24.4m, reflecting a net initial yield of 5.35%.

The 274,000 sq ft regional warehouse was acquired as part of the £117m Cabot logistics portfolio in August 2017 off a blended net initial yield of 6.1%.

The unit has been let to Tesco for an additional four years at a rental of £1.395m per annum, off £5.27 per sq ft.

LondonMetric continues to retain the remaining 13 logistics assets from the Cabot portfolio of which 11 are urban logistics.

Andrew Jones, chief executive of LondonMetric, said: “Consumer shopping patterns in food retailing continue to evolve quickly and so in response to strengthening investor appetite for logistics assets over the last few months, we have decided to monetise this asset.

“In line with our strategy, we will recycle the proceeds into our growing urban logistics portfolio and our development pipeline, which offer more attractive yields and greater certainty of growth.”

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