LondonMetric Property has completed the acquisition of a Next warehouse in Doncaster for £21.2m.
The property company said the acquisition represents a net initial yield of 6.3%.
The 264,000 sq ft logistics warehouse is let to Next for a further 13 years at a rent of £1.42m per annum, equating to around £5.37 per sq ft.
The lease benefits from annual fixed rental uplifts of 2.5% which will increase the purchase net initial yield to 7.1% within three years.
LondonMetric has also sold an 18,000 sq ft office investment in Chiswick for £7.4 million. The multi-let office was acquired as part of the group’s A&J Mucklow takeover in 2019.
Andrew Jones, chief executive of LondonMetric, 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 was advised by GV & Co for the warehouse acquisition.