LondonMetric acquires logistics warehouse in the UK for €85m

LondonMetric Property has acquired a new, 36,232 m2 M&S logistics warehouse in Bristol for £74 mln (€85 mln), representing a 5.65% net initial yield. 

The facility, developed by Epta Development Corporation and Stoford, is pre-let to M&S on a 20-year lease with CPI-linked rent reviews every five years. 
This key distribution centre for M&S food products will handle chilled, ambient, and frozen goods. 
Located at Axis Works, in the prime logistics hub of Avonmouth, next to other LondonMetric properties, the BREEAM Excellent building is due for completion in summer 2026. 
LondonMetric will receive a 5.5% coupon during construction.
Andrew Jones, CEO of LondonMetric, commented: “This is a high quality development let on a very long lease to one of the UK's strongest retailers. It will deliver income longevity, certainty and guaranteed growth. It further extends our relationship with M&S and adds another exceptional building to LondonMetric’s portfolio.”
Alex Freudmann, MD of M&S Food, said: “Modernising our supply chain is key to increasing the capacity in our network and will help us get ahead of the volume curve we are driving in M&S Food to meet our ambition of becoming a shopping list retailer. This new site will ensure that we’re getting the right products to the right stores at the right time for our customers. It will also create a great working environment for our colleagues.”
Chris Tsakumis, Principal at EDC, added: “We are pleased to have invested in the site and our long-term UK investment strategy has reaped initial dividends with the announcement of our first occupier and investment sale.”
CBRE and Knight Frank represented the developers, EDC and Stoford, while Lambert Smith Hampton acted for M&S.