Leasing update

RNS Number : 4539T

Urban Logistics REIT PLC

03 July 2018

 

Urban Logistics REIT plc

("Urban Logistics" or the "Company")

Leasing update

Urban Logistics is pleased to provide an update on its leasing activity with the agreement of terms to let a 110,729 sq ft site in Leigh, Greater Manchester, signing a 10-year lease with Alliance Boots.

The property was vacant, with a rental guarantee for 12 months, when purchased in December 2017 for £7.2 million, (excluding purchaser costs). It has undergone a substantial internal and external refurbishment and the tenancy, which commenced on 2 July 2018, has a rent review and tenant break in the fifth year of the term.

The asset comprises distribution warehousing with an adjoining office building, together with a 52.5m yard that has 360-degree circulation. It is close to Manchester City Centre with excellent motorway links to the M6, M60, M61 and M62.

Commenting on the leasing activity, Chief Executive, Richard Moffitt said:

"The letting of our newly refurbished warehouse in Leigh to Alliance Boots brings a tenant with a strong covenant into a modernised facility, supporting its complex distribution operation. This demonstrates our focused approach to ensuring a diverse, high-quality tenant base across our portfolio, underpinning the Company's income generation capabilities."

For further information contact:

Urban Logistics REIT plc Richard Moffitt	[phone]
Montfort - Financial PR and IR adviser Olly Scott	[phone]
Canaccord Genuity - Nominated Adviser and Broker Simon Bridges Andrew Buchanan	[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 lettable space in industrial and logistics real estate across the UK, (being more than one third lower than the most recent peak of 2009).

 

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