LondonMetric acquires Luton warehouse for £15.5m

Real estate investment trust LondonMetric Property has acquired an urban logistics warehouse in Luton from Marcol Industrial for £15.5m.

LondonMetric said on Wedenday that the 168,000 square foot property was located on Luton Enterprise Park and was currently let to two occupiers with a weighted average unexpired lease term of three years.

The FTSE 250-listed firm noted the asset would provide it with £700,000 in rent per year, which equates to "a very low" £4.20 per square foot, reflecting a net initial yield of 4.3%.

LondonMetric added that the property offered "significant potential" for redevelopment, which it will look to progress on the expiry of the current leases.

Chief executive Andrew Jones said: "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."