LondonMetric has exchanged conditional contracts with CDP Ltd, the development arm of the Marshall Construction Group, for the purchase and forward funding of a new 524,000 sq ft retail distribution centre development in Wakefield for £39.4 million.
The distribution centre has already been pre-let to Poundworld Retail Ltd on a 15 year lease at a rent of £2.5 million per annum, equivalent to £4.85 per sq ft. Construction is expected to begin later in the summer, with a practical completion target of Autumn 2016.
The 30 acre site is situated in a well-established logistics hub near junction 31 of the M62, and existing occupiers include DHL, HSBC, TK Maxx, Asda and Royal Mail.
Chief Executive of LondonMetric, Andrew Jones, said: “This acquisition replenishes our near term development portfolio and extends our currently committed and pipeline developments to 3.5 million sq ft.
“The development is well located, will provide significant warehouse space, benefits from attractive contractual uplifts and is pre-let to an expanding retailer who we already enjoy a strong relationship with”.
Mark Ward, Property Director at Poundworld Retail, added that the company has a rapid store expansion programme coming over the next three years and the new distribution centre will aid these plans.
Mr Ward continues: “We look forward to partnering with LondonMetric whom we have known for a number of years, as we bring further jobs and prosperity to the Yorkshire region.”
The announcement of the acquisition comes just 24 hours after LondonMetric reported the £229 million purchase of a 330,000 sq ft warehouse in Doncaster, and increases the company’s distribution portfolio, to 23 facilities valued at £661.6 million.
JLL advised LondonMetric.
