LondonMetric has acquired a six single let urban logistics property portfolio from a FTSE 100 pension fund for £78m.

The portfolio, which was acquired in an off market deal, comprises 526,000 square foot across locations in Stafford, Banbury, Romford, Southampton, Bristol and Aberdeen.

It was leased to tenants including General Electric, Thales, EVRI, Macarthys Laboratories and KCA Deutag, with a WAULT of 10 years.

The portfolio generates an annual income of £4.8m, which is expected to rise to £5.8m over the next two years. The purchase price reflects a blended NIY of 5.8%, which is set to increase to 6.9% over the next two years.

The deal comes as LondonMetric announced the sale of an office asset in Edinburgh for £6m. It is let to HSBC for a further five years’ term certain and was acquired through its takeover of CTPT.

As a result, the firm has now sold 14 of the 16 non-core CTPT assets at an average of 18% above original underwrite values.

Chief executive at LondonMetric, Andrew Jones, said: "This was a very rare opportunity to acquire, off market, a high-quality portfolio which is immediately earnings accretive. The well located, mission critical assets, offer an attractive mix of near-term income growth and value-enhancing asset management opportunities.

"Logistics remains our strongest conviction thematic and now accounts for over 45% of our total portfolio."

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