LondonMetric acquires M&S warehouse in Bristol for £74m
LondonMetric Property has acquired a logistics warehouse in Bristol for £74m, reflecting a net initial yield of 5.65%.
The 390,000 sq ft warehouse is pre-let to Marks & Spencer on a 20-year lease with five-yearly upwards-only rent reviews linked to the consumer price index.
It is located at Axis Works in Bristol, adjacent to other LondonMetric warehouse investments in Avonmouth.
The asset is being developed by Epta Development Corporation and its partner Stoford. It is set to become a key facility for M&S’s food distribution business and will incorporate chilled, ambient, and frozen products.
The building – which is rated BREEAM Excellent – is expected to complete in summer 2026 and LondonMetric will receive a funding coupon of 5.5% during the development.
Andrew Jones, chief executive of LondonMetric, said: “This is a high quality development let on a very long lease to one of the UK’s strongest retailers. It will deliver income longevity, certainty and guaranteed growth. It further extends our relationship with M&S and adds another exceptional building to LondonMetric’s portfolio.”
Alex Freudmann, managing director of M&S Food, added: “Modernising our supply chain is key to increasing the capacity in our network and will help us get ahead of the volume curve we are driving in M&S Food to meet our ambition of becoming a shopping list retailer. This new site will ensure that we’re getting the right products to the right stores at the right time for our customers. It will also create a great working environment for our colleagues.”
CBRE and Knight Frank acted for Epta Development Corporation and Stoford. Lambert Smith Hampton represented M&S.