Acquisition

RNS Number : 1115W

Pacific Industrial & Log REIT PLC

10 November 2017

 

Pacific Industrial & Logistics REIT plc

("Pacific Industrial & Logistics" or the "Company")

Acquisition

Pacific Industrial & Logistics, (AIM: PILR) the specialist UK industrial and logistics REIT, is pleased to announce that it has completed the acquisition of a logistics asset at Victoria Road, Seacroft, Leeds for a total consideration of £2.8 million, (the "Acquisition"). The purchase price represents a net initial yield of 6.8% and the site has a rent of £5.00 per sq ft, with reversionary potential. 

The Acquisition is consistent with the Company's investment strategy of identifying attractively priced stock with asset management potential; and is well located to the north east of Leeds City Centre, close to the A64. It comprises a modern 41,494 sq ft logistics warehouse which is let to Komori UK Limited and Pharmacy2u Limited on leases through to 2020 and 2022 respectively. Both have outstanding rent reviews.   

The Acquisition has been financed from the Company's existing resources, following its placing in August 2017. The Company continues to evaluate a number of high-quality opportunities in its pipeline and will deploy its capital, together with debt finance where appropriate, to fund acquisitions that meet its investment criteria.

Commenting on the Acquisition, Richard Moffitt, Chief Executive, said:

"The acquisition of this well-located institutional-grade logistics property offers attractive asset management opportunities in line with our investment strategy.

"We remain opportunistically acquisitive, focusing on assets that serve the 'last mile' needs of a diverse tenant base, especially those responding to the challenges of e-commerce and supply chain constraints."

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For further information contact: 

Pacific Industrial & Logistics REIT plc Richard Moffitt Christopher Turner Sam Tucker	[phone]
Canaccord Genuity - Nominated Adviser and Joint Financial Adviser Bruce Garrow Charlie Foster	[phone]
Montfort - Financial PR and IR adviser Nick Miles Olly Scott	[phone]

About Pacific Industrial & Logistics REIT

Pacific Industrial & Logistics REIT plc is a property investment company, quoted on the AIM market of the London Stock Exchange, (AIM: PILR).

The Company has been established to invest in UK based industrial and 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 industrial and logistics 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 lettable space in industrial and logistics real estate across the UK (being more than one third lower than the most recent peak of 2009).

Acquisitions are targeted in the 6.5-7.5% net initial yield bracket, (with affordable underlying rents in the region of £4.50-£5.50 per sq ft), on an overall LTV of 35-40% and a significant margin over financing costs, thus presenting attractive income, capital growth and total return opportunities.

At the time of its results for the period from IPO on 13 April 2016 to 31 March 2017, the Company achieved a 22.6% total shareholder return, including aggregate dividends of 6 pence per ordinary share on an IPO price of 100p.

 

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