LondonMetric has stepped up its exposure to the UK’s fast-growing online retail market by acquiring a Tesco distribution centre in south London for £21m.
The property company said yesterday it has bought the Croydon warehouse from CBRE Global Investors in a deal reflecting an initial yield of 5.5 per cent.
The 173,000 square feet online warehouse, which is also known as a dark store, is one of four used by Tesco in London to meet growing online grocery sales.
“This is a strategically important site in a densely populated part of London which will continue to benefit from the growth in online shopping and convenience retail,” LondonMetric chief executive Andrew Jones said.
The group owns 21 distribution centres worth £555.3m following the deal with 100 per cent occupancy. Its distribution arm accounts for 44 per cent of the company’s total property portfolio.