LondonMetric buys 10 single-let properties for £55m

LondonMetric Property announced the acquisition on Wednesday of ten single-let properties for £55m from the ACT Foundation.

The portfolio consists of nine urban logistics assets totalling 340,000 sq ft and a retail store let to Wickes for another 14 years. The assets are situated in established distribution locations, with around half in London and the South East and a further 35% in the Midlands.

The purchase price reflects a day one net initial yield of 4.4% and a reversionary yield of 5.3%.

The portfolio has a weighted average unexpired lease term of nine years and generates income of £2.6m a year. LondonMetric said it is let to "strong" tenants including Ceva Logistics, DSV, Jewson, Vodafone and Wickes, with an average rent of £6.90 per square foot, which is significantly below estimated rental value of £8.10 per square foot.

Chief executive Andrew Jones said: "Following the recent disposal of six non-core distribution assets for £36m, we are pleased to have re-allocated the proceeds into a much stronger and better located portfolio within such a quick timescale.

"The portfolio is fully income generating, offers good opportunities to capture strong income growth and increases our urban logistics portfolio to approximately £400m."