LondonMetric, a FTSE 250 REIT, has announced the acquisition of a pair of warehouses in Manchester and Birmingham for a combined sum of £39m.
The deal represents a blended yield on cost of 4.25% while the newly constructed units are let for 15 years at an average rent of £6.60 per sq ft.
Expected to be operational in February, the Manchester unit comprises 137,000 sq ft of warehouse space and was bought for a sum of £20.5m.
The site has been pre-let to LSE Group Holdings, a UK pure play online home lighting retailer.
Spanning 122,000 sq ft, the Birmingham development was acquired for a total fee of £18.1m, and is currently leased to the international industrial service provider, ERIKS.
Andrew Jones, chief executive at LondonMetric, said: “Our strong relationships have allowed us to secure two additional high quality assets.
“These newly built warehouses are fully income generating, well located and let on long leases to established and growing occupiers.”
He added that the sites, acquired from Marshall CDP and Opus Land, provide the firm with “guaranteed rental growth”, therefore improving the quality of its portfolio and allowing the group to “extend both existing and new occupier relationships”.