£29m of logistics assets acquired at a NIY of 6.7%
Urban Logistics REIT plc
("Urban Logistics" or the "Company")
£29 million of logistics assets acquired at a NIY of 6.7%
Urban Logistics, (AIM: SHED) the specialist UK logistics REIT, is pleased to announce the acquisition of three assets in October for a total consideration of £29.0 million at a blended net initial yield (NIY) of 6.7%. The assets include two income producing assets providing immediate additional revenue and the forward funding of a development project.
As a result Urban Logistics has now committed or deployed £132 million of capital following its July equity raise (5.8% weighted NIY), with c.£23 million of further investments in advanced stages of contractual progress. The Company has also recently announced a new pipeline of over £400 million of high-quality logistics assets, utilising the Company's extensive proprietary network to source attractive off market deals.
Richard Moffitt, Chief Executive, commented:
"These assets are excellent additions to our fast growing portfolio, and demonstrate our team's continuing ability to source well priced, high quality assets off market at favourable terms.
As we move towards our Main Market listing on the London Stock Exchange, we remain committed to our proven strategy to acquire medium sized last mile logistics assets, in key locations, with excellent transport links. Our properties are all key to our tenants' operations, and we seek to add value through active asset management and improvements in environmental performance."
Acquisitions
Driffield
This is a 137,962 sq. ft. facility let to Premier Modular Ltd, a leading modular building manufacturer, until 2032. It was acquired for £8,350,000 at a NIY of 6.44%.
Spennymoor
This is a 239,867 sq. ft. warehouse at Spennymoor, near Durham. The unit is let to Stanley Black & Decker, who have a long association with the area, and this warehouse is adjacent to their manufacturing plant. The purchase price paid was £8,650,000 at a NIY of 8.19%.
Andover
A 121,078 sq. ft. vacant warehouse unit on the Walworth Industrial Estate near Andover. The building is situated close to major roads in an area with a very low vacancy rate and with growing rental levels. It will undergo a comprehensive redevelopment while being marketed, aiming for a NIY of 5.8%, at a total cost (including refurb costs) of £11,950,000.
- Ends -
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Urban Logistics REIT plc Richard Moffitt
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+44 (0)20 7591 1600 |
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Buchanan Helen Tarbet Simon Compton George Beale
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+44 (0)20 7466 5000 +44 (0) 7872 604453 +44 (0) 7979 497324 +44 (0) 7450 295099 |
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Singer Capital Markets - Nominated Adviser and Broker James Maxwell / Alaina Wong / Oliver Platts (Corporate Finance) Alan Geeves / James Waterlow / Sam Greatrex (Sales)
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+44 (0)20 7496 3000 |
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Panmure Gordon (UK) Limited - Joint Broker Chloe Ponsonby (Corporate Broking) Emma Earl (Corporate Finance) David Hawkins (Sales)
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+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.
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