LondonMetric sells recently-acquired Tesco warehouse in Bolton

LondonMetric Property announced the disposal of a Tesco logistics warehouse in Bolton for £24.4m on Tuesday, reflecting a net initial yield of 5.35%.

The FTSE 250 firm said the 274,000 square foot regional warehouse was acquired as part of the £117m Cabot logistics portfolio in August, off a blended net initial yield of 6.1%.

It said the unit is let to Tesco for a further four years at a rental of £1.395m per annum, off £5.27 per square foot.

LondonMetric said it was retaining the remaining 13 logistics assets from the Cabot portfolio, of which 11 are urban logistics.

“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,” said LondonMetric chief executive Andrew Jones.

“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.”