LondonMetric Property Plc (“LondonMetric”) announces the acquisition of a long let cold storage and logistics warehouse development for £53.4 million.
The 300,000 sq ft building is pre-let on a 25 year lease to AM FRESH GROUP (“AM FRESH”), an international agri-tech company that supplies the majority of UK supermarkets with a range of items including fruits, plant-based fresh goods and flowers. The rent of £2.0 million p.a. equates to a low £6.70 psf and is subject to five yearly CPI+1 linked reviews, at an acquisition yield of 3.7% which is expected to rise to 4.3% at the next review.
The development is located at Alconbury Weald, Huntingdon, on the A1(M), with the nearby A14 interchange providing a direct link to Felixstowe port. It will be a highly specified cold storage, production and logistics warehouse used to supply fresh fruit to food retailers and wholesalers across the UK. The property will be fitted out with market leading robotics and automation and include an innovation centre and incubator for agri-tech R&D.
The building will be certified BREEAM Very Good and construction by AM FRESH has commenced, with completion expected in December 2022. LondonMetric will receive a funding coupon of 3.7% during the development.
Source : Company