Swindon-based Oak Furniture Land’s national distribution centre at South Marston has been sold for £22m in a major property investment deal.
LondonMetric has acquired the 302,000 sq ft warehouse from privately-owned Midlands-based property company IM Properties.
The building, previously known as DC2, was developed in 2006 and originally occupied by supermarket giant Morrisons as a regional distribution centre.
Oak Furniture Land, the UK’s largest retailer of solid hardwood furniture and one of the country’s fastest-growing companies, moved in late 2012. It supplies its significant online business and its 50 out of town stores.
The site has existing planning consent for a further 150,000 sq ft of distribution space which could now be built, according to LondonMetric.
The building has an unexpired lease term of 13.6 years – 8.6 years to its first break.
LondonMetric chief executive Andrew Jones said: “We have acquired £112 million of high quality distribution centres since the half-year end, increasing our weighting by value from 20% to 28%. These assets are prime distribution real estate generating good income and many also offer significant asset management opportunities which draw on our property expertise and deep occupier relationships. We already have a good relationship with Oak Furniture Land and will support their evolving requirements by looking to implement the 150,000 sq ft extension over the next 12 months.”
CBRE advised LondonMetric and Cushman & Wakefield advised IM Properties.