London Metric makes off-market acquisition of distribution centre

11th Nov 2013 08:16

- Off-market acquisition of distribution centre- Three leases re-geared in separate transactionLondonMetric Property has agreed to the off-market acquisition of the Travis Perkins Distribution Centre in Northampton, taking the group's total number of such sites to nine. The centre was bought for £9m, excluding costs, reflecting a net initial yield of 8.8%. The acquisition will be funded from existing resources.Travis Perkins occupies the unit until March 2014. LondonMetric is already in detailed discussions with Travis Perkins about extending their occupation. Separately, LondonMetric has completed with Travis Perkins the regear of three Wickes leases at Barnsley (25,900 sq ft), Chatham (24,900 sq ft) and Oxford (28,200 sq ft) on behalf of its joint venture with USS. It has extended the average unexpired lease term on these properties from 7.3 years to 21.7 years. Andrew Jones, Chief Executive of LondonMetric, said: "The off market acquisition of the Travis Perkins Distribution Centre illustrates our ability to secure a strategically located asset let to one of our key retail partners off an attractive yield. "The retail distribution sector will continue to be an increasing component of our portfolio and the importance that we place on our occupiers is underscored by our ability to work with them to ensure longevity of occupation in our buildings."NR