LondonMetric snaps up urban logistics spaces from Savills for £122m

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British vehicle production rose 17 per cent last year as an ease in the global semiconductor shortage and increasing electrified output drove growth.
British vehicle production rose 17 per cent last year as an ease in the global semiconductor shortage and increasing electrified output drove growth.

LondonMetric Property has snapped up Savills Investment Management’s UK Income and Growth Fund for a little over £122m.

The deal, which follows an equity placing in November, will see the Fund’s portfolio of 15 assets, mainly urban logistics spaces, fall under LondonMetric jurisdiction.

Key occupiers of the assets include HSBC, Fujitsu and Volkswagen – who are set to help generate £5.35m worth of rent a year for new owner LondonMetric.

Nearly 75 per cent of the assets span Croydon, Farnborough, Hounslow, Greenwich, Guildford, Maidstone and Stevenage. However, the rest are located around the Midlands.

“Following our equity placing last month, we are pleased to have quickly invested a substantial proportion of the proceeds into this high-quality portfolio,” LondonMteric boss Andrew Jones said.

“Reflecting their London & South East weighting, we expect these assets will continue to perform strongly as high occupier demand and diminishing warehouse supply drive rental growth higher.”

Springer Nicolas, Knight Frank and Savills Capital Advisers helped advise on the deal.