logistics development

40-acre logistics development site acquired

LondonMetric Property has unconditionally acquired a 40-acre regional logistics development site from a local authority.

Bedford Link has planning consent for up to 670,000 sq ft of logistics space and all other conditions relating to the purchase have now been satisfied.

The site is located on the A421, close to junction 13 of the M1 and is next to Marsh Leys Business Park, a distribution location where LondonMetric owns an Argos warehouse and other occupiers include Sainsbury’s and Asda.

“We are pleased to be in a position to commence infrastructure works, reinvesting proceeds from our recent disposals,” said Andrew Jones, chief executive of LondonMetric.

“We are still unlocking value within this area of the market and will continue to target yields on cost materially above current investment yields.”

LondonMetric is engaged in active occupier discussions to develop up to four regional distribution warehouses at a total anticipated cost of £60m delivering a yield of around 7%.

The company was advised by DTRE and Graftongate on the acquisition, with the latter being appointed as development manager.

Enabling works are due to commence shortly and construction is anticipated to start in summer 2018.

Andrew added: “The supply of Grade-‘A’ distribution space remains highly constrained, which is reflected in the quality of our ongoing discussions with potential occupiers.”

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