FTSE 100-listed LondonMetric Property PLC (LSE:LMP) has acquired six single-let urban logistics properties through a £78 million off-market deal, reflecting a blended net initial yield (NIY) of 5.80%, which is projected to rise to 6.90% over the next two years.
The acquired portfolio consists of 526,000 square feet spread across Stafford, Banbury, Romford, Southampton, Bristol, and Aberdeen.
Tenants include General Electric, Thales, EVRI, Macarthys Laboratories, and KCA Deutag, with a weighted average unexpired lease term (WAULT) of ten years.
Commenting on the acquisition, chief executive Andrew Jones said: "This was a very rare opportunity to acquire, off market, a high-quality portfolio which is immediately earnings accretive.
“The well located, mission critical assets, offer an attractive mix of near term income growth and value-enhancing asset management opportunities."
Logistics now represents over 45% of LondonMetric's total portfolio.