£30 Million Portfolio Sale

RNS Number : 5655T

Urban Logistics REIT PLC

26 March 2021

 

Urban Logistics REIT plc

("Urban Logistics" or the "Company")

£30 Million Portfolio Sale

Urban Logistics, (AIM: SHED) the specialist UK logistics REIT, announces that it has exchanged contracts to sell five assets as part of a portfolio for £30.0 million at a 4.8% exit yield, realising a total property return of 78.8%.

The sale is in line with Urban Logistics' stated strategy of active portfolio management and value optimisation where appropriate. Completion is expected to take place on 21 April 2021. The average purchase price was 7.0% NIY and the Company has undertaken extensive asset management with new rents and lease terms agreed across all sites. The sale represents a 35.4% uplift on 30 September 2020 book values. The proceeds will be reinvested into other pipeline opportunities.

The five assets are located in Bedford, Northampton (two warehouses), Leicester and Chesterfield and have been sold to a joint venture between The Carlyle Group and ARA Dunedin. They are let with an average WAULT of 7.4 years.

Richard Moffitt, Chief Executive, commented:

"I am extremely pleased with this sale which has realised a strong return for shareholders.

"Since we started out on our journey in 2016, we have achieved considerable success creating, then realising value across our portfolio once available asset management initiatives have been completed. This deal is the latest example of our proven track record of value creation.

"The funds realised from these sales will be quickly redeployed in acquiring further assets from our pipeline."

- 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

 

 

DISBCGDXLXDDGBU