- 8 September 2021
- Transport / Logistics Services
Real-estate and property managers LondonMetric have become the latest property owners to invest heavily in urban logistics property.
LondonMetric have invested £35.4 million in three sites, including a 130,000 square foot site in Worthing on a sale and leaseback agreement with Bowers & Wilkins that uses the site for its HQ, manufacturing its audio technology products and distribution. In addition the property company has bought a 50,000 square foot site in Uckfield that has been leased to John Lewis Partnership for 15 years. It has also spent £6.1 million on a 47,000 square foot site in Exeter that has been leased to Jewson for the next 17 years. The three sites generate rents of £1.7 million a year but according to LondonMetric there is potential to increase the value and ultimately rents on them.
Andrew Jones, chief executive of LondonMetric, said: “These urban logistics assets are in good locations and let on long leases with certainty of income growth. We are continuing to find attractive opportunities for redeploying capital into our preferred sectors of urban logistics and grocery-led long income.”
Last week LondonMetric bought an urban logistics warehouse in Cardiff for £11.1 million. This follows news last week that British Land has been recalibrating its retail strategy by investing in two sites that have the potential to be turned into last mile, ultra fast delivery logistics hubs.
It seems there is a lot of high level interest in urban logistics and as venture capital supports businesses from above, so property businesses are taking interest in supplying the infrastructure into the industry.