Doncaster Next distribution centre acquired for £29m

A Next distribution warehouse, located in South Elmsall, has been purchased by property management company LondonMetric Property Plc for £29m.

The off market acquisition is from a private property company and will be funded from the LondonMetric’s existing resources.

The warehouse, situated around two miles north west of Junction 38 of the A1(M) near to LondonMetric’s Superdrug Distribution Centre, forms part of Next’s ‘logistics hub’ in the area, with three further Next owner-occupied units on adjacent sites and a conveyor link bridge to one of these units.

The 330,300 sq ft premises was purpose-built for the clothing retailer in 2005 and features 22,000 sq ft of office space with additional mezzanine floors, which increases the internal area to 725,000 sq ft.

The site area is 19 acres and the site cover is 40%.

The unit is let at a rent of £1.9 million per annum with a further 2.5% pa compounded fixed uplift in April 2019, and has an unexpired lease term of 9 years.

Following this acquisition, LondonMetric’s distribution portfolio comprises 22 distribution centres and totals £656.6m representing 46.7% of the the company’s total portfolio.

Andrew Jones, chief executive of LondonMetric, said: “This is a highly automated warehouse which is let to a great tenant and is a strong addition to our distribution portfolio. It complements our ownership of the nearby Superdrug Distribution Centre and also increases our exposure to one of the UK’s top retailers with whom we already have an excellent relationship.”

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