The deals reflect a net initial yield of 6 percent and a reversionary yield of 6.5 percent.
Located on the Leeds ring road next to the M1, one acquisition is a 100,000-square foot warehouse completed in January 2017. It is currently occupied by Vision Alert Automotives on a 15-year lease at £5 per-square foot. The tenant is consolidating its operations and intends to use the warehouse as its UK headquarters.
The second acquisition, a 49,000-square foot warehouse close to Leeds city centre, was built in 2009. It is currently let to Siemens, which has three years remaining on a 10year lease at £5.25 per-square foot.
The deal follows LondonMetric’s sale of three retail properties in Christchurch, Bedford and Maidstone for a combined total of £61 million.
Andrew Jones, chief executive of LondonMetric, said: “We continue to grow our exposure to last mile distribution. As consumer delivery expectations increase, so the requirement for better urban logistics intensifies. These modern warehouses are well located and offer reversionary and asset management potential.”
Gent Visick advised LondonMetric on the deal.