Urban Logistics buys Crown warehouse portfolio for ?47.2m

(Sharecast News) - Urban Logistics announced on Thursday that, on 29 April, it acquired seven properties known as the 'Crown Portfolio', for a total consideration of ?47.2m.
The AIM-traded real estate investment trust said the acquisition carried a net initial yield of 7.0%.

It said it included seven distribution sites, with an average warehouse size of 84,105 square feet, located in Aberdeen, Huntingdon, Blackpool, Ipswich, Newmarket, Plymouth and Rotherham.

The company said it had a low capital value of ?68 per square foot, and a low average passing rent of ?4.96 per square foot.

Urban Logistics said the acquisitions were fully funded from the proceeds of March's ?136.1m equity capital raise.

"We are delighted to have continued strengthening the Company's portfolio, investing a further ?47m into regional warehouses which support the distribution of staple goods across the UK," said chief executive officer Richard Moffitt.

"These properties are well located, close to labour availability and population centres, have strong tenant covenants and offer a range of asset management opportunities."

Moffitt said the company had now deployed ?103m of the ?136m raised in March, and would continue to adopt a "patient and cautious" approach as it built the portfolio.

"Our strong balance sheet enables us to look opportunistically at properties which offer attractive returns and complement our existing portfolio.

"Our tenants continue to trade well and all of our rents have now been collected.

"We remain convinced of the attractive opportunities ahead across the company's portfolio and the mid-sized logistics warehousing sector more generally."

At 1304 BST, shares in Urban Logistics REIT were up 0.46% at 131.6p.