LONDON (dpa-AFX) - Shares of LondonMetric Property Plc (LMP.L) are up around 4 percent on Thursday's trading on the London Stock Exchange, after the company announced the acquisition of a logistics warehouse pre-let to retail major Marks and Spencer Group Plc or M&S (MAKSY.PK, MAKSF.PK, MKS.L).
The 390,000 sq.ft. regional warehouse has been acquired for a sum of 74.0 million pounds, with a net initial yield or NIY of 5.65 percent.
The facility is currently under development by Epta Development Corp. or EDC in partnership with Stoford. It is located at Axis Works in Bristol, which is a prime logistics hub and home to several of LondonMetric's existing investments in Avonmouth.
The project is expected to be completed in the summer of 2026. During the construction phase, LondonMetric said that it will receive a funding coupon of 5.5 percent.
LondonMetric said that the property is let to M&S on a 20-year lease, with five-yearly upward-only rent reviews linked to CPI.
Designed to BREEAM Excellent standards, the high-specification warehouse will serve as a key distribution centre for M&S's food logistics, incorporating chilled, ambient, and frozen storage capabilities.
Commenting on the deal, Andrew Jones, Chief Executive, LondonMetric, said, 'This is a high quality development let on a very long lease to one of the UK's strongest retailers. It will deliver income longevity, certainty and guaranteed growth. It further extends our relationship with M&S and adds another exceptional building to LondonMetric's portfolio.'
On the LSE, LondonMetric stock is trading up 4 percent at 177.90 pence.
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