LondonMetric Property has completed a £51.1 million portfolio acquisition comprising a UPS-let logistics warehouse at East Midlands airport and a hotel at Manchester airport.

The 450,000-square-foot industrial property on Douglas Way generates a rent of £1.16 million per year and was developed by UPS. The facility is its second largest cargo facility in Europe and its primary gateway in the UK.

The Clayton Hotel in Manchester has 365 rooms and generates a rent of £1.07 million a year. LondonMetric said the property performs strongly due to its proximity to the airport. The tenant at the hotel has recently secured planning consent to build a 214-bed extension.

LondonMetric said the properties are let on very long leases with a weighted average unexpired lease term to first break of over 100 years.

The firm also confirmed that it has sold five former Urban Logistics REIT assets for a combined £22.1 million, reflecting a blended net initial yield of 5.4% and 5% above acquisition price.

They comprise an urban warehouse in Redditch and a portfolio of four industrial open storage assets in Telford, Sheffield, Leigh and Northampton let primarily to XPO and DX.

Andrew Jones, chief executive of LondonMetric, said in a statement: "We have continued to monetise assets acquired through takeovers and have now sold eight Urban Logistics REIT assets at strong prices, reflecting the ongoing demand for smaller lot sizes.

"The proceeds from these and previous sales have been successfully reinvested into high quality, [triple net lease] and mission critical assets which are strongly underpinned by significant reversion and materially higher values achievable on vacant possession."

Kimmre advised and secured the off-market transaction on behalf of LondonMetric.

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