LondonMetric to acquire M&S distribution center in Sheffield
LondonMetric Property has inked a deal to acquire the Marks & Spencer (M&S) distribution centre in Sheffield from clients of CBRE Global Investors for £32.2m, reflecting a net initial yield of 7.6%.
The acquisition will be funded from the group's existing resources.
The asset comprises two units totaling 625,900ft² and is sited at the Sheffield International Rail Freight Terminal (SIRFT) which is strategically located near the M1 motorway, to the east of Sheffield City Centre and within five miles of the M18/M1 intersection.
Recently, M&S entered into a new ten year lease expiring in November 2023 on both units, with a tenant break option on unit 2 after five years
It has also agreed to invest in the asset as part of a drive to improve its logistics portfolio.
Following this acquisition, the LondonMetric distribution portfolio comprises 12 distribution centres.
LondonMetric chief executive Andrew Jones said, "The acquisition is consistent with our strategy to acquire high yielding assets which can benefit from our active asset management approach and strong occupier relationships."