Londonmetric to buy Oak Furniture Land distribution centre

24th Mar 2014 08:40

LondonMetric Property has agreed to acquire the Oak Furniture Land Distribution Centre in Swindon. The FTSE 250 group is funding the £22m purchase from its existing resources at a net initial yield of 6.5%. The asset comprises a 302,000 sq ft warehouse developed in 2006 with an unimplemented planning consent for a further 150,000 sq ft of distribution space. The unexpired lease term is 13.6 years.As a result of the acquisition, the group's distribution portfolio comprises 13 distribution centres with a combined value of £316.1m, representing 28% of its enlarged group portfolio. Andrew Jones, Chief Executive of LondonMetric, said: "We have acquired £112m of high quality distribution centres since the half-year end, increasing our weighting by value from 20% to 28%. These assets are prime distribution real estate generating good income and many also offer significant asset management opportunities which draw on our property expertise and deep occupier relationships. "We already have a good relationship with Oak Furniture Land and will support their evolving requirements by looking to implement the 150,000 sq ft extension over the next 12 months, which will increase our yield on cost to over 7%."The weighted average unexpired lease term across the distribution portfolio is 12.4 years and the portfolio is 99.6% occupied. Fixed rental uplifts across the distribution portfolio represent 39% of total distribution rental income. NR