LondonMetric recognises the ever increasing importance of reducing the environmental impact of its business, addressing climate change risks and opportunities as well as meeting the needs of its stakeholders.
Approach & Objectives
We are committed to improving our sustainability and Responsible Business performance and have set clear objectives.
Policies & Reports
We are committed to building on our strong Responsible Business foundations and levels of disclosure. Sustainability is a key consideration for the board and this is reflected in our policies and reporting.
Environmental Performance
Our carbon footprint has fallen significantly as our assets have become less operational and energy efficiency initiatives have been implemented.
Stakeholders & People
The key to the Company’s success is employing a highly talented and motivated team that makes the right property decisions and develops close relationships with occupiers and all other key stakeholders.
Our Responsible Business activities are embedded into our investment, asset management, development and corporate activities. We work with all of our stakeholders to deliver on our objectives.
Responsible Business Case Studies
LondonMetric was selected as Bedford Council’s preferred partner in 2013 for a 40 acre distribution development. In 2017, we unconditionally purchased the site with planning consent.
We have formed a strong relationship with the local authority to ensure that we meet their objectives of attracting local investment, creating local jobs and providing a balanced approach to growth for Bedford in a responsible way.
In June 2018, we commenced speculative construction of three urban logistics warehouses totalling 188,000 sq ft. Following lengthy and detailed occupier discussions, two of the units were let before construction completed and our team’s expertise enabled quick occupier access, having satisfied their precise requirements.
Development of the remaining two larger warehouses totalling c.500,000 sq ft is planned upon occupier commitment and upon completion, is expected to create 1,000 permanent jobs across a range of disciplines and a logistics site unique in character and design.
LondonMetric developed a 1,062,000 sq ft distribution warehouse which it pre-let to Primark on a 25 year lease. It is Primark’s UK flagship warehouse, ideally located along the A14 between Felixtowe port and the M1. There are 3 mezzanine levels which increases the total capacity of the warehouse to 1.9m sq ft.
The BREEAM Very Good development took 11 months and completed in 2015 at a cost of £78m and a yield on cost of 6.9%. It was built on a former ironworks and involved 500,000m3 of earthworks, ensuring that no material was taken off site. 436kw of solar PV is installed. Primark took occupation in 2016 and the building now operates at near full capacity. The building generates rental income of c£5.6m pa with fixed annual rental uplifts.
LondonMetric acquired Dixons Carphone’s main UK distribution warehouse for £68.5m in 2014. The 726,000 sq ft asset was built for Dixons in 2006 and is situated in Newark.
Following extensive engagement with the occupier, LondonMetric funded and installed a 1,000KW Solar PV scheme at the warehouse in 2017. The installation was the largest landlord installed distribution roof top PV system at the time, covering 66,000 sq ft. The installation generates £85,000 pa of additional income for LondonMetric.
Dixons’ annual grid energy consumption at the warehouse is estimated to have reduced by c.15% which represents 500 tonnes of carbon dioxide emissions each year. Purchasing energy generated by the solar scheme from LondonMetric also protects Dixons from volatility in energy prices and provides operational cost savings.
LondonMetric acquired the 410,000 sq ft of distribution warehousing let to Eddie Stobart in 2015 for £56.5m at a NIY of 5.1%. It is exceptionally well located on the A13, 10 miles from central London and 8 miles from the M25.
After two years of working up a partial redevelopment with the occupier, we built a180,000 sq ft warehouse and a 147 space lorry park to replace two old buildings and a small yard.
The BREEAM Very Good warehouse scheme was completed in 2018 after 12 months of development at a cost of £17m and a marginal yield on cost of 5.7%. The lease was extended by 10 years to 26 years across the 454,000 sq ft estate with rent increasing by c30% to £4.1m pa. The redevelopment created a modern, fit for purpose facility that significantly improves operational efficiencies and environmental credentials of the estate, including a 250 KW Solar PV installation, electric car charge points, LED lighting upgrade to the lorry park and an on site lorry cleaning servicing and fuel island which saves 3,900 lorry movements pa.
