StockMarketWire.com - LondonMetric Property exchanged contracts with Argos to extend the lease at its distribution warehouse by a further 12 years. The company also exchanged contracts with Oak Furniture Land to extend its warehouse.

The new lease with Argos would run for 15 years, without break, and generate a rent of £4.1m pa subject to five yearly inflation linked uplifts, the company said.

LondonMetric also exchanged contracts with Oak Furniture Land to extend its 302,000 square feet distribution warehouse in Swindon by 55,000 square feet. Construction was expected to commence in May 2019 at a cost of £4m, delivering a marginal yield on cost of 8%.

The lease would run for a further nine years, generating a rent of £1.9m a year subject to five yearly inflation linked uplifts, the company said.

'As well as providing greater certainty of income, these deals also give us better certainty of future income growth with all of our mega distribution warehouses now benefiting from contractual rental uplifts,' the company added.


At 8:20am: [LON:LMP] LondonMetric Property share price was +1.3p at 202.3p



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