Warehouse sold in multi-million pound deal
14 March 2014
A major distribution centre in Sheffield operated by one of the UK's best known retailers has been sold for more than £30m.
LondonMetric Property has bought two units totally 625,900 sq ft, from clients of CBRE Global Investors in a £32.2m deal.
The units currently form the Marks and Spencer Distribution Centre. M&S recently entered into a new ten-year lease on both units, which are based at the Shefield International Rail Freight Terminal (SIRFT), with a tenant break option on unit two after five years, and has made a commitment to invest in the asset as part of a drive to improve its logistics portfolio.
Andrew Jones, chief executive of LondonMetric, said: "This purchase reflects a very attractive initial yield that delivers attractive cashflow to the group, as well as strengthening our relationship with one of the UK's leading retailers. The asset offers excellent asset management opportunities to work with M&S to secure their long term occupation of the property.
"The acquistion is consistent with our strategy to acquire high yielding assets which can benefit from our active asset management approach and strong occupier relationships."
Following this acquisition, the LondonMetric distribution portfolio comprises 12 distribution centres with a combined value of £294m, representing 27% of the enlarged group's portfolio.