Investor seeking £100m to invest in logistics real estate

Real estate investor LondonMetric Property has announced plans to raise £100 million in a share placing in order to support its deal pipeline and bolster its income.

About £60m will be used to acquire a long income portfolio of five assets including a sale and leaseback with a convenience/online operator.

A further £10m will be used to acquire a London-focussed sale and leaseback portfolio, while £30m will be used for the purchase of an identified pipeline of opportunities, which are in discussions and comprise an urban logistics warehouse in London and a sale and leaseback portfolio.

Furthermore, LondonMetric has very recently completed the acquisition of a £3.2m London urban logistics property let to a parcel operator.

The company will issue 56 million new ordinary shares, representing 6.7% of its issued share capital.

Andrew Jones, chief executive at LondonMetric, said: “We are continuing to operate against an unprecedented economic and social backdrop which is accelerating a number of trends that were already disrupting established practices. This is having a profound effect on real estate as performances across the sectors continue to polarise.

“The structural trends towards online and convenience that have underpinned our conviction calls into logistics and long income are set to accelerate, as many temporary shopping behaviours become more permanent with changes that were expected to take years now occurring within months.

“Against this backdrop, our portfolio remains well positioned and has continued to perform strongly as borne out by our high rent collection and continued dividend payments.

“These uncertain times are starting to give rise to quality investment opportunities that are seldom available in a normalised market. Through our occupier relationships we have identified some excellent assets, at attractive pricing, which would further strengthen our portfolio’s long-term income characteristics. Not only do we expect to see further opportunities arise but also we expect the pitch to be much less crowded than before.”