£16 Million Acquisition and Rent Collection Update

RNS Number : 7658L

Urban Logistics REIT PLC

15 January 2021

 

Urban Logistics REIT plc

("Urban Logistics" or the "Company")

£16 Million Acquisition and Rent Collection Update

Urban Logistics, (AIM: SHED) the specialist UK logistics REIT, is pleased to announce an acquisition and rent collection update for the quarter to March 2021.

Acquisition

The Company has acquired off-market a logistics site in Bromborough, Wirral for £16.3 million at a 5.0% NIY, as part of the deployment of capital raised from the Company's recent fundraising.

The 169,963 sq ft property was constructed in 2011/12 to an institutional specification with a 19 metre eaves height and a BREEAM Excellent standard. The site is let to Great Bear Distribution, part of the Culina Group, which operates a Nestle Cereal contract. The manufacturing plant is conveniently located adjacent to the property. Included with the purchase is an acre of land to accommodate any future extensions to the building and yard. The lease, with a passing rent of £4.97 per sq ft, runs to January 2022 after which a reversionary lease, with a cap and collar rent of £5.15 to £5.50 per sq ft, has been agreed through to January 2032. There is an open market rent review then due in 2027. The site is located on the Wirral International Business Park, 1 mile from the M53, making it well-suited to the 'last touch logistics' profile which is characteristic of Urban Logistics' portfolio.

Rent Collection Update

The Company has received 99% of rent due for the quarter to March. The remaining 1% is expected to be collected imminently. All tenants remain fully operational.

Richard Moffitt, Chief Executive, commented:

"This is another high quality off-market acquisition that formed part of our pipeline. This site with its reversionary lease is well-located and offers an excellent opportunity for value enhancement over the long term through active asset management.

"Despite the lockdown restrictions that are once again in place, I'm pleased to report that all of our tenants are operational. Our strong levels of rent collection are evidence of our proactive approach to strong covenants and our preference for tenants involved in the supply of essential products and consumer goods. "

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For further information contact:

Urban Logistics REIT plc Richard Moffitt	[phone]
Buchanan Helen Tarbet Henry Wilson George Beale	[phone] [phone] [phone] [phone]
N+1 Singer - Nominated Adviser and Broker James Maxwell / James Moat (Corporate Finance) Alan Geeves / James Waterlow / Sam Greatrex (Sales)	[phone]
Panmure Gordon (UK) Limited - Joint Broker Chloe Ponsonby (Corporate Broking) Emma Earl (Corporate Finance)	[phone]

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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