Disposal

RNS Number : 3353Z

Urban Logistics REIT PLC

17 May 2019

 

Urban Logistics REIT plc

("Urban Logistics" or the "Company")

Disposal

Urban Logistics, (AIM: SHED) the specialist UK industrial and logistics REIT, is pleased to announce that it has sold a site located on Postley Road, Bedford for £9.2 million realising a Total Property Return* of 74%.

The 85,012 sq ft site was purchased at the time of the Company's IPO in April 2016 for £5.5 million and comprises four industrial units together with a piece of development land. The development land, which the purchaser has an option to acquire if planning permission is granted (for £0.5 million), is not included in the disposal and will be retained by the Company.  

The units, which have been sold to Apperly Estates Limited, are fully let with an average WAULT of 5.9 years. They have undergone extensive asset management, with new rents agreed at £6.52 per sq ft on Unit A and £6.26 per sq ft on Unit B.

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

"I am extremely pleased with this disposal which has realised a very strong return for shareholders three years on from purchase.

"Since our IPO we have achieved considerable success creating then realising value across our portfolio once available asset management initiatives have been completed.

"Looking ahead, we remain selectively acquisitive and have an extensive pipeline of opportunities, focusing on properties that serve the 'last mile' needs of a diverse tenant base, especially those responding to the challenges of e-commerce and supply chain constraints."

*Total Property Return (TPR) is capital growth plus net rental income plus sale profit expressed as a percentage of the purchase price. The Company will adopt this metric going forward when reporting on disposals

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For further information contact:

Urban Logistics REIT plc Richard Moffitt	[phone]
Montfort - Financial PR and IR adviser Olly Scott	[phone]
N+1 Singer - Nominated Adviser and Broker James Maxwell / James Moat (Corporate Finance) Alan Geeves / James Waterlow / Sam Greatrex (Sales)	[phone]
Radnor Capital Partners Joshua Cryer Iain Daly	[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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