LondonMetric flips Tesco shed

Listed investor LondonMetric Property has disposed of a Tesco warehouse in Bolton’s Wingates Industrial Estate for £24.4m, reflecting a net initial yield of 5.35%.

The 274,000 sq ft Great Bank Road facility was acquired as part of the £116.6m Cabot logistics portfolio in August 2017 off a blended yield of 6.1%. This deal also included a 70,000 sq ft building split into two units at Calver Quay, Warrington, which remains in the portfolio.

The Bolton unit is let to Tesco for a further four years at a rental of £1.4m each year at £5.27/sq ft.

Andrew Jones, chief executive of LondonMetric, said: “Consumer shopping patterns in food retailing continue to evolve quickly and so in response to strengthening investor appetite for logistics assets over the last few months, we have decided to monetise this asset.

“In line with our strategy, we will recycle the proceeds into our growing urban logistics portfolio and our development pipeline which offer more attractive yields and greater certainty of growth.”