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LondonMetric Property PLC on Monday said it has acquired a long-let distribution warehouse in Doncaster for £21.2 million. The London-based real estate investor said the 264,000 square foot warehouse is let to Next PLC for a further 13 years at rent of £1.42 million per year, or £5.37 per square foot. LondonMetric noted the warehouse benefits from annual fixed rental uplifts of 2.5% yearly, meaning that net initial yield will increase to 7.1% from 6.3% within a three-year period. The company also said it has sold an 18,000 square foot office in Chiswick, west London for £7.4 million. The office was acquired in 2019 as part of LondonMetric’s takeover of A&J Mucklow. Chief Executive Andrew Jones said: ‘As the UK economy reaches an inflection point on both inflation and interest rates, we are increasingly attracted to triple net leased assets that have strong income compounding characteristics and certainty of growth. ‘We have continued to successfully exit non-core assets and reinvest into sectors that benefit from structural tailwinds. We have now, based on purchase value, disposed of 39% of the Mucklow portfolio.’ LondonMetric were flat at 183.80 pence each on Monday morning in London. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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