£23m Forward Funding of New Assets
Urban Logistics REIT plc
("Urban Logistics" or the "Company")
£23 Million Forward Funding of New Logistics Assets
Urban Logistics, (AIM: SHED) the specialist UK industrial and logistics REIT, is pleased to announce the £23.0 million forward funding of two development sites.
Richard Moffitt, Chief Executive, commented:
"Covid-19 has highlighted the importance of warehousing and logistics real estate, especially the scarce, high-quality, single-occupier regional and last mile urban properties on which the Company focuses.
"The development programme announced today, which we have sourced off market, will add further high-quality new assets to the Company's portfolio at a time when smaller urban logistics warehouses are in short supply. Given the strength of demand for space from occupiers seeking representation in the East Midlands market, we expect to achieve favourable lease terms on each of the assets with high quality tenant counterparties."
Five New Logistics Assets
The Company has exchanged contracts with Wilson Bowden Developments Limited, conditional on receipt of planning permission, for the forward funding of five high-quality urban logistics assets at Nottingham and Leicester (together the "Acquisition"). All assets are expected to achieve an EPC 'A' rating.
The maximum commitment for the Acquisition is £23.0 million and will be financed from a combination of the Company's cash resources, the sale of logistics properties and debt financing. The development yield on cost is 6.12%.
The 8.1-acre site at Blenheim Park, Nottingham, will comprise four units with a total gross internal floor area of 166,330 sq ft. Blenheim Park benefits from a location that is 1 mile from junction 26 of the M1.
The 2.5-acre site at Optimus Point, Leicester, will comprise one unit with a gross internal floor area of 43,850 sq ft. Optimus Point benefits from a location that has direct access to junction 21a of the M1.
During construction, which is expected to commence in September 2021, the Company will benefit from a 5.5% interest rate coupon on the forward funding provided. Practical completion is anticipated between September 2022 and February 2023 . The Company has an option over two further sites until July 2021 which are also in locations seeing strong rental growth and yield compression for new 'Grade A' stock.
- Ends -
For further information contact:
|
Urban Logistics REIT plc Richard Moffitt
|
+44 (0)20 7591 1600 |
|
Buchanan Helen Tarbet Henry Wilson George Beale
|
+44 (0)20 7466 5000 +44 (0) 7872 604453 +44 (0) 7788 528143 +44 (0) 7450 295099 |
|
N+1 Singer - Nominated Adviser and Broker James Maxwell / James Moat (Corporate Finance) Alan Geeves / James Waterlow / Sam Greatrex (Sales)
|
+44 (0)20 7496 3000 |
|
Panmure Gordon (UK) Limited - Joint Broker Chloe Ponsonby (Corporate Broking) Emma Earl (Corporate Finance)
|
+44 (0)20 7886 2500 |
About Urban Logistics REIT
Urban Logistics REIT plc is a property investment company, quoted on the AIM market of the London Stock Exchange (AIM: SHED).
The Company has been established to invest in UK-based logistics properties with the objective of generating attractive dividends and capital returns for its shareholders. Its investment strategy focuses on strategically located smaller single let properties servicing high-quality tenants. Investment returns will be generated by an experienced management team focusing on quality stock selection and active asset management.
A number of structural and commercial factors currently support the attractive opportunity in the last mile/regional industrial and logistics real estate sub-sectors targeted by the Company, including: strong occupier demand, (driven by the growth of e-commerce and investment by retailers in their associated supply chain) and a decline in the supply of smaller sized lettable space in industrial and logistics real estate across the UK.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
Latest directors dealings
- 1 day ago Savannah Energy
- 1 day ago Buccaneer Energy PLC
- 1 day ago Savannah Energy
- 1 day ago Carclo
- 1 day ago Schroder Japan Growth Fund