LondonMetric Property has bought a 168,000ft2 urban logistics property in Luton for £15.5 million with plans to redevelop the site once leases to the current tenants come to an end.
The facility bought from Marcol Industrial Investments is located on Luton Enterprise Park, close J11A of the M1 motorway. It is let to two occupiers with a WAULT of three years.
Andrew Jones, Chief Executive of LondonMetric said: “We continue to grow our urban logistics portfolio with quality acquisitions and this latest transaction is an excellent covered land opportunity in a very strong location offering significant rental reversion as well as attractive future redevelopment potential.”
The rent of £0.7 million a year equates to a very low £4.20 per ft2. Rents for Grade A industrial and logistics units the area are currently between £9 – £11 per ft2.
LondonMetric was advised by Adroit and Knight Frank. The seller was advised by Savills.