The deal sees the food company agree a 23-year lease with the benefit of CPI+1 linked rent reviews of between 2-4% in return for a consideration of £43.8m

The building is located in a highly established logistics area of Enfield adjacent to the M25, less than a five minute drive from Junction 25. It occupies a 5.6 acre site and has a site cover of 41%, which is low for a London location.

The property generates a rent of £1.6 million a year, which is just under 10% below market rent. There are no lease incentives as part of the sale and leaseback and the contractual rent reviews will increase the purchase net initial yield from 3.5% to an expected 4.0% after five years.

The purchase price is nearly 100% underwritten by the residual value of the land, which reflects the very strong geography of the asset.

Stonehill Partners acted for LondonMetric and Strettons acted for Reynolds.