£28 Million of Logistics Acquisitions

RNS Number : 6505P

Urban Logistics REIT PLC

19 February 2021

 

19 February 2021

Urban Logistics REIT plc

("Urban Logistics" or the "Company")

£28 Million of Logistics Acquisitions

Urban Logistics, (AIM: SHED) the specialist UK logistics REIT, announces the acquisition of six logistics assets for a total consideration of £27.8 million at a 6.87% NIY.

Richard Moffitt, Chief Executive, commented:

"We are delighted with these new logistics assets which are perfectly positioned to deliver essential goods the "last mile" to customers and businesses in key conurbations.

"In line with our strategic focus, all of these assets are single-let properties servicing high quality logistics tenants."

The Acquisitions

Kinaxia Portfolio

On 17 February 2021, the Company acquired a portfolio of four logistics assets from Kinaxia Logistics for £17.3 million at a 6.24% NIY. This sale and leaseback transaction includes sites in Macclesfield, Telford, Royal Wootton Bassett and Yate. Totalling 167,350 sq ft of warehousing, the average rent is £5.24 per sq ft. The tenant provides haulage and logistics services to clients across the UK. The new leases are for 15-year terms with a tenant break option after 10 years. There are five yearly rent reviews to the higher of RPI (2 - 4% cap and collar) and open market value.

Leigh

On 12 February 2021, the Company acquired a 80,209 sq ft distribution unit for £6.7 million at a 6.25% NIY. This is a sale and leaseback transaction with XPO and the site is let for a term of five years. The rent is £5.50 per sq ft. The site is close to the A580 / M6 in a location well known to the Manager.

Rotherham

On 10 February 20221, the Company acquired a well-specified 124,966 sq ft distribution unit for £3.8 million from Goodman at a 10.8% NIY. The site is let to Green Forest Solutions for a term of 5 years through to 2025. The rent is £3.50 per sq ft. The site is located close to the M18, M1 and A1(M).

- Ends -

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.

 

END

 

 

ACQGZGMZRRDGMZM