London & Stamford Property has exchanged contracts to purchase a distribution unit in Harlow for £23 mln (EUR 26 mln), excluding costs, reflecting a property yield of 7.5%.

The property comprises a 273,115 sq ft (25,000 m2) distribution warehouse leased to Tesco Stores on a lease which still has 12.5 years to run. Tesco uses the facility to distribute to its stores in London and the South East.

The acquisition will be added to the existing south eastern England distribution assets held in a joint venture with Green Park Investments. London & Stamford's equity commitment is expected to be less than £5 mln.

London & Stamford Property is a group UK REIT with £1.5 bn in assets under management.