Commercial property is, once again, seen as an attractive investment as the market continues to pick up and this week LondonMetric confirmed that it has acquired Superdrug’s Doncaster distribution centre in a £13 million deal. The retail group purchased the 292,500 square foot warehouse property from OLIM Property, with the sale expected to be finalised by June 2014.
Under the current contract stipulations, Superdrug will fully occupy the property until 2025 at which point the lease can either be renewed or another company can take its place. The location is certainly popular with large retail businesses, as adjacent properties are currently serving as the distribution or storage centres for well-known firms such as Next, Asda and Findlays.
LondonMetric chief executive Andrew Jones believes the acquisition will help in meeting the long term aims of the real estate firm.
He says; “This attractive acquisition of Superdrug’s distribution centre supports our aspiration to grow our retail distribution portfolio, an area where we will continue to commit capital during 2014.”
Although central London remains the key location for commercial property investment, there is rising interest in the regional markets. Warehouse properties on the outskirts of cities such as Birmingham, Coventry and Stoke-on-Trent, for example, have become particularly attractive due to their central location, while areas such as the South East have seen a number of high value deals in the office market since the beginning of the year.
