LondonMetric Property Plc (LON:LMP) announced that it has exchanged contracts to let two logistics warehouses across 138,000 sq ft at its Bedford Link Logistics Park.
The largest warehouse of 107,000 sq ft has been let to a major US automation & technology business and the other 31,000 sq ft warehouse has been let to Workstories, a commercial furniture wholesaler.
Both warehouses have been let on 15 year leases at an average rent of £7.25 psf and will generate £1.0 million of rent per annum, with 76% of income subject to inflation linked uplifts.
Construction works will complete shortly and the development is expected to deliver a yield on cost of 6.4%. The first phase of the development is now 73% pre-let with one 50,000 sq ft warehouse remaining to be let.
Andrew Jones, Chief Executive of LondonMetric, commented:
“We are delighted to have signed these long leases ahead of practical completion, which show the occupier appeal of the development and its location.
“We continue to see good interest from occupiers for the last remaining warehouse and will look to commence development of the second phase totalling 500,000 sq ft upon commitment from new occupiers.”
LondonMetric and its development partner Graftongate were advised by DTRE and Adroit Real Estate Advisors.