The sale and leaseback deal – an increasingly popular way to raise capital and off-load property responsibilities – was agreed with investor LondonMetric Property plc.
The 115,000 sq ft Enfield warehouse is close to junction 25 of the M25 orbital motorway. It occupies a 5.6 acre site and has a site cover of 41%, which is low for a London location, and opens the door to further development.
The property generates a rent of £1.6 million a year, which is just under 10% below market rent.
The purchase price is the equivalent of the value of the land itself, disregarding the warehouse, which makes it almost a no-brainer buy for LondonMetric.
Andrew Jones, Chief Executive of LondonMetric, said: “Assets of this quality seldom become available and we look forward to building on our relationship with Reynolds and welcome them as one of our key customers.”
Stonehill Partners acted for LondonMetric and Strettons acted for Reynolds.