Property group LondonMetric has acquired another site in Yorkshire just a day after acquiring a Next distribution warehouse in the region.
LondonMetric agreed with CDP, the development arm of the Marshall Construction Group, to purchase and forward fund the development of a new 524,000 sq ft retail distribution centre in Wakefield for £39.4m.
The warehouse has been pre-let to Poundworld on a 15 year lease at a rent of £2.5m pa, equating to £4.85 psf.
Construction is due to commence later this summer with practical completion targeted for Autumn 2016.
The 30 acre site is located near J31 of the M62 in an established logistics hub with adjoining occupiers including Asda, DHL, HSBC, Royal Mail and TK Maxx.
Following this acquisition, LondonMetric’s distribution portfolio comprises 23 distribution centres and totals £661.6m. The distribution portfolio has 100 per cent occupancy.
Andrew Jones, chief executive of LondonMetric, said: “As our two existing distribution developments near practical completion, this acquisition replenishes our near term development portfolio and extends our currently committed and pipeline developments to c3.5 million square feet.
“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, said: “We have a rapid store expansion programme over the next three years and the new distribution centre will aid our expansion plans, improve efficiency and allow for a broadening of our product range in our single and multi-price format stores.
“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.”