Urban Logistics Share News (SHED)

(Sharecast News) - Specialist industrial and logistics real estate investment trust Urban Logistics has sold a site in Nuneaton for £8.1m, it announced on Friday.The AIM-traded firm said the 130,508 square foot building was purchased as part of a portfolio in September 2017 for £6.7m.It said the site was being sold to an owner occupier, Cofresh, and realised a profit on cost of 21% and an internal rate of return on equity invested at the property level of 24%.At the same time, the company said it purchased a logistics property in Thatcham for a total consideration of £3.4m.The purchase price represented a net initial yield of 5.9%.Urban Logistics said the site had a rent of £7.97 per square foot and a reversionary yield of around 7.0%, given expected rental growth and its South East location serving the Reading, Henley and Newbury areas.The acquisition was described by the board as being consistent with its investment strategy of identifying well-located and attractively priced stock with asset management potential, with the site sitting within a location that was seeing "strong" rental growth, eight miles from the M4.It said the site comprised a 26,478 square foot logistics warehouse let on a new five-year lease to DHL's UK Mail operation, which was using it as a last-mile strategic hub and a key part of its distribution network.The acquisition was being financed from the company's cash resources."I am extremely pleased with the Disposal which has realised a strong return for shareholders," said Urban Logistics chief executive Richard Moffitt."The timely re-investment of proceeds and acquisition of this well-located, institutional-grade distribution site let to DHL's UK Mail offers strong rental growth prospects and asset management opportunities in the future, ensuring the portfolio continues working for shareholders."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."