(Alliance News) - Urban Logistics REIT PLC on Thursday said it has forked out GBP47.2 million for a portfolio of seven distribution sites in the UK.
Seven distribution sites, located in Aberdeen, Huntingdon, Blackpool, Ipswich, Newmarket, Plymouth and Rotherham, where acquired by the real estate investment trust.
Chief Executive Richard Moffitt said: "We are delighted to have continued strengthening the company's portfolio, investing a further GBP47 million into regional warehouses which support the distribution of staple goods across the UK.
"These properties are well located, close to labour availability and population centres, have strong tenant covenants and offer a range of asset management opportunities."
The purchase was funded using proceeds from a GBP136.1 million fundraise conducted in April.
"We have now deployed GBP103 million of the GBP136 million raised in March and will continue to adopt a patient and cautious approach as we build the portfolio. Our strong balance sheet enables us to look opportunistically at properties which offer attractive returns and complement our existing portfolio," CEO Moffitt added.
The seven properties are collectively known as the Crown portfolio. Between them they have 84,105 square feet of space with an average passing rent of GBP4.96 per square foot.
Tesco PLC's wholesale unit Booker contributes 31% of rent at the Crown portfolio.
Shares in the company were 0.4% lower at 132.00 pence each in London on Friday afternoon.
By Eric Cunha; ericcunha@alliancenews.com
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