LondonMetric Property PLC said on Wednesday that it has acquired a property for £15.5 million from London-based investment company Marcol Industrial Investments LLP.

The building is a 168,000 square foot urban logistics warehouse in Luton, just north of London. It is currently let to two occupiers with a weighted average unexpired lease term of three years.

The London-based real estate owner and manager explained that the warehouse has rent of £700,000 per year which equates to a very low £4.20 price per square foot. This, the company continued, reflected a net yield of 4.3% which rises to 5.9% based on estimated rental value.

LondonMetric said the property offers significant redevelopment potential.

Chief Executive Andrew Jones 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.’

Shares in LondonMetric were up 1.8% at 263.80 pence on Wednesday morning in London.

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