28th March 2022
Urban Logistics REIT plc
(“Urban Logistics” or the “Company”)
Acquisitions Update
Urban Logistics (LON: SHED), the last mile logistics focussed REIT, has acquired approximately £72 million of income producing assets at a blended NIY of 4.6%, with significant asset management potential.
Key points
- £72 million of logistics assets acquired since the February 2022 trading update at a blended NIY of 4.6%
- 4 transactions completed, including our first central London property, purchased for £28 million at a NIY of 4.2%, and other assets strategically located in existing and emerging logistics hubs across the UK
- All transactions are income producing immediately, and benefit from strong covenants
- In aggregate £140 million of capital has been deployed or committed since the December 2021 fund raise, at a blended NIY of 5.0%
Richard Moffitt, Chief Executive, commented:
“It has been a busy few weeks at Urban Logistics, as we continue to deploy the proceeds from our December 2021 fundraising, on assets with significant scope for shareholder value creation.
“We are pleased to acquire our first property in central London,on a long lease at 4.2% NIY and with an excellent tenant in place. We think of this as a very exciting opportunity with significant reversion and suitable for a number of last mile solutions.
“These acquisitions represent a step forward as we work through our extensive pipeline, with further high yielding assets to come. We remain focused on well let, strategically positioned assets, in existing and emerging logistics hubs.
“Our recent inclusion in the FTSE 250 index underlines our position as a leading player in this market sector, and our reputation as a reliable and nimble counterparty for sellers is enabling us to access off-market transactions at very competitive prices. We expect this flow of acquisitions to continue and expect to make further acquisitions in the near term, with acquisitions in solicitors hands bringing our expected blended NIY on capital deployed since the December fund raise to circa 5.4%.”