London property company expands urban logistics portfolio with £15.5m Luton acquisition
LondonMetric Property PLC has announced the acquisition of an urban logistics warehouse in Luton from Marcol Industrial Investments for £15.5m.
The 168,000 sq ft property is located on Luton Enterprise Park, close to Luton town centre and J11A of the M1.
It is let to two occupiers with a WAULT of three years. The rent of £0.7m p.a. equates to a “very low” £4.20 psf, reflecting a net initial yield (NIY) of 4.3 per cent which rises to 5.9 per cent based on estimated recovery value (ERV).
The property offers significant potential for redevelopment, which LondonMetric intends to look to progress on expiry of leases.
Andrew Jones, chief executive of LondonMetric, commented: “We continue to grow our urban logistics portfolio with quality acquisitions and this latest transaction is an excellent covered land opportunity in a very strong location offering significant rental reversion as well as attractive future redevelopment potential.”
LondonMetric was advised by both Adroit and Knight Frank on this acquisition. The seller was advised by Savills.
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