Acquisition

RNS Number : 7004G

Urban Logistics REIT PLC

08 November 2018

 

Urban Logistics REIT plc

("Urban Logistics" or the "Company")

Acquisition

Urban Logistics, (AIM: SHED) the specialist UK industrial and logistics REIT, is pleased to announce that on 7 November 2018 it exchanged contracts to acquire the freehold of a site located at Hudson Road, Bedford for a total consideration of £17.0 million from 3M Products Limited, (the "Acquisition"). The site comprises a building and adjacent development site totaling 20.1 acres. The building represents 183,883 sq ft of warehouse space, which is being acquired with vacant possession.

As part of the Acquisition, the Company is simultaneously selling a plot of development land of 12.1 acres for £5.0 million to a local developer that has plans to build new logistics facilities.

The vendor, who was also the previous occupier, has vacated the site and marketing of the warehouse space has generated strong interest from a range of high-quality local and multinational occupiers that fit the Company's tenancy criteria.  

The Acquisition is consistent with the Company's investment strategy of identifying well located and attractively priced stock with asset management potential; and sits within an industrial estate that is well known to the Company.

The Acquisition is being financed from the Company's cash resources, following the recent sale of a site in Leeds, as well as with debt finance from its club facility with Santander and Barclays.

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

"The acquisition of this well-located, institutional-grade logistics property offers attractive asset management opportunities for the Company, together with the potential to add newly developed assets in the future.

"This is another example of our approach to creating value whereby the proceeds from successful asset management are reinvested into new opportunities, ensuring the portfolio continues working for shareholders.

"We have had considerable success with investments in Bedford and are confident that this site will prove attractive to a variety of different occupiers.

"Looking ahead, 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:

Urban Logistics REIT plc Richard Moffitt	[phone]
Montfort - Financial PR and IR adviser Olly Scott Honoria Simpson	[phone] [phone]
N+1 Singer - Nominated Adviser and Broker James Maxwell / James Moat (Corporate Finance) Alan Geeves / James Waterlow / Sam Greatrex (Sales)	[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 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 smaller sized lettable space in industrial and logistics real estate across the UK.

 

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