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.