Investor snaps up Marks & Spencer’s Bristol warehouse
Investor LondonMetric Property has snapped up the newly announced M&S regional distribution centre in Bristol for £74 million.
By Liza Helps, Property Editor, Logistics Matters
M&S has only just confirmed that it is taking the space as reported in Logistics Matters this week. M&S pre-let the 390,000 ft2 bespoke cross dock facility on a 20-year lease with five yearly upward only rent reviews linked to the consumer price index (CPI).
The highly specified warehouse is being developed by Epta Development Corporation and its development partner, Stoford. It will be a key facility for M&S’s food distribution business and incorporates chilled, ambient and frozen product. The unit is located at Axis Works, a prime logistics location in Bristol, adjacent to other LondonMetric warehouse investments in Avonmouth.
The BREEAM Excellent building is expected to complete in summer 2026 and LondonMetric will receive a funding coupon of 5.5% during the development.
The acquisition of the long-let M&S logistics warehouse for £7 million, reflects a net intial yield of 5.65%.
LondonMetric Chief Executive Andrew Jones, said: “This is a high quality development let on a very long lease to one of the UK’s strongest retailers. It will deliver income longevity, certainty and guaranteed growth. It further extends our relationship with M&S and adds another exceptional building to LondonMetric’s portfolio.”
CBRE and Knight Frank acted for EDC and Stoford. Lambert Smith Hampton represented M&S.
