Response to Press Commentary

RNS Number : 9776H

Pacific Industrial & Log REIT PLC

16 March 2018

 

Pacific Industrial & Logistics REIT plc

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

Response to Press Commentary

Pacific Industrial & Logistics, (AIM: PILR), the specialist UK industrial and logistics REIT, notes the recent press commentary in Property Week.

Pacific Industrial & Logistics has a strategy to build a significant real estate business with a focus on assets in the industrial and logistics real estate subsectors with individual values of less than £10 million. The Directors believe that an attractive investment opportunity exists to develop a diversified portfolio of properties which meet its target investment criteria, which are located in key logistics locations and which have strong cash flow characteristics.

The Company confirms it is in preliminary discussions with existing and potential new investors to raise equity finance of up to £50m to fund the acquisition of an identified pipeline of urban logistics assets. There can be no certainty that either the fundraising nor the acquisitions will complete.

The Board will provide a full update in due course.

The Company's trading update of 26 February is available to be viewed on the Company's website (www.pacificil.com).

- Ends -

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

For further information contact: 

Pacific Industrial & Logistics REIT plc Richard Moffitt	[phone]
Canaccord Genuity - Nominated Adviser and Broker Simon Bridges Charlie Foster Andrew Buchanan	[phone]
Montfort - Financial PR and IR adviser Nick Miles Olly Scott	[phone]

Notes to Editors

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 6.0-7.5% 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.

 

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