- LondonMetric said Monday it had acquired two urban logistics warehouses for £23.5m, reflecting a blended net initial yield of 4.9% and rising to 5.6% after five years.

The average lease length is 13 years, the company said.

The company acquired a 48,000 square feet warehouse had been acquired in Avonmouth, let to Chep at a rent of £0.7m pa, subject to annual RPI linked reviews of between 2% to 4%.

Chep is a global leader in pallet supplies and distribution, and is part of the Brambles Group.

The company also acquired an 80,000 square feet warehouse in Cambridgeshire, let to Cambridge Commodities at a rent of £0.5m pa, subject to five yearly RPI linked reviews of between 2% to 4%.

Cambridge Commodities provides nutritional ingredients to the sports, health, animal and food industries.

'These two modern warehouses are fully income generating, let for an average of 13 years to established occupiers and benefit from guaranteed rental growth,' said Andrew Jones, Chief Executive of LondonMetric.

'Following these acquisitions, our urban logistics portfolio is approximately £420 million and we will continue to take advantage of selective opportunities to grow our urban logistics portfolio above £500 million in the near term.'

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