- LondonMetric Property said it had purchased a south coast regional distribution warehouse for £17.8m, reflecting a net income yield of 9.0%.

The 298,600 sq ft warehouse, located in Bognor Regis along the new bypass, four miles from the A27, was let for a further two years at a rent of £1.7m a year to John Wiley & Sons.

Simultaneous with purchase, Wiley had signed a 15-year reversionary lease with LondonMetric, commencing in 2021, at a rent of £2.0m a year (£6.50 psf) subject to annually payable RPI linked rental uplifts of between 1% and 3% a year. The lease included break options in 2026 and 2031.

As part of the regear, LondonMetric would fund improvement works to the building totalling £1.4m, which would deliver an initial yield on cost of 8.6%, rising to 9.6% in 2021 on commencement of the new lease and after allowing for occupier incentives.

At 9:55am: [LON:LMP] LondonMetric Property share price was +0.95p at 199.25p

Story provided by