LondonMetric buys 8 distribution warehouses for £40m

LondonMetric Property said it had acquired eight 'last mile' distribution warehouse for a total of £39.9m at a blended yield of 6.2% and with a weighted average unexpired lease term of 9 years.

"These are important acquisitions as we continue to build critical mass within the 'last mile' distribution sector, which now extends to 19 assets across 1.2m sq ft,” said chief executive Andrew Jones.

"Structural market changes indicate that all these assets are highly reversionary. The demand/supply tension we are seeing for 'last mile' distribution remains attractive as reflected in the organic rental growth that we are capturing on our own 'last mile' assets."