Commencing deployment of recent equity raise
20 December 2021
Urban Logistics REIT plc
("Urban Logistics" or the "Company")
Commencing deployment of proceeds of recent equity raise
£29 million of logistics assets acquired at a NIY of 5.8%
Urban Logistics (LON: SHED), the specialist UK logistics REIT which recently completed a £250 million equity raise and moved to the Main Market on 7th December, is pleased to announce the acquisition of four assets, using proceeds raised, for a total consideration of £28.6 million at a 5.82% average net initial yield (NIY). The value accretive assets include three immediately income-producing properties and the forward funding of a development project.
Richard Moffitt, Chief Executive, commented:
"We're pleased to confirm our continued deployment of capital following the close of our recent oversubscribed equity raise. This is testament to our team's ability to act swiftly and reliably on deal execution. As previously stated, we have an excellent pipeline of "last mile / last touch" logistics assets to acquire and the team will be working hard over the coming months, investing in those quality assets that will be accretive to shareholder value, with further acquisitions expected before the end of the year.
"Our strategy of acquiring mid-box last mile logistics assets, in key locations, with excellent transport links has not altered since inception in 2016. We acquire properties which are key to our tenants' operations, and we continue to create additional performance through active asset management and improved environmental performance."
Acquisitions
Elland Road, Leicester
A distribution depot off the M1 motorway, near Leicester. The 27,115 sq. ft. site is a parcel delivery hub let to the Royal Mail Group. The purchase price paid was £3,180,000 at a NIY of 5.0%.
Caswell Road, Northampton
A 22,783 sq. ft. warehouse at in Northampton with very low site density. The unit is let to Tuffnells Parcel Express, a tenant well known to the Company, until 2031. The purchase price paid was £5,600,000 at a NIY of 5.7%.
Riverside Park, Dundee
A warehouse facility of 117,031 sq. ft. near the airport, in Dundee. The purchase price was £6,000,000 at a NIY of 6.0%. The site is occupied by Hermes Parcelnet and presents asset management opportunities to achieve a strong reversionary yield.
Newhall Road, Sheffield
The Company has entered into an agreement to forward fund the development of a new logistics unit in Sheffield. The agreement is subject to planning, and the development is expected to complete in November 2022, and will comprise a warehouse of 131,500 sq. ft. The building is designed to have excellent environmental credentials, with a BREAM Excellent rating, an EPC of A, and electric vehicle charging points. The project is targeting a 6.0% NIY on cost.
- 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 - Joint 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)
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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 main market of the London Stock Exchange (LON: SHED). The Company is the only London listed REIT to focus purely on specialist logistics assets, with a tenant base which delivers essential goods to the UK.
The Company's investment management team has over 50 years' experience in investing in the logistics market and is able to source high quality assets off-market at favourable terms, creating considerable value for shareholders. Its ability to buy well and provide additional value enhancing asset management initiatives has helped the Company pursue its successful growth strategy, enabling the Company to grow substantially, from a £10m market cap company in April 2016, to over £800m at present.
The Company's strategy is 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 vital and strategically located smaller single let properties servicing high-quality tenants, in a market in which demand vastly outstrips supply. Investment returns are generated by a focus on quality stock selection and active asset management.
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