19 Feb 2021 07:00
19 February 2021
Urban Logistics REIT plc
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("Urban Logistics" or the "Company")
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£28 Million of Logistics Acquisitions
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Urban Logistics, (AIM: SHED) the specialist UK logistics REIT, announces the acquisition of six logistics assets for a total consideration of £27.8 million at a 6.87% NIY.
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Richard Moffitt, Chief Executive, commented:
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"We are delighted with these new logistics assets which are perfectly positioned to deliver essential goods the "last mile" to customers and businesses in key conurbations.
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"In line with our strategic focus, all of these assets are single-let properties servicing high quality logistics tenants."
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The Acquisitions
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Kinaxia Portfolio
On 17 February 2021, the Company acquired a portfolio of four logistics assets from Kinaxia Logistics for £17.3 million at a 6.24% NIY. This sale and leaseback transaction includes sites in Macclesfield, Telford, Royal Wootton Bassett and Yate. Totalling 167,350 sq ft of warehousing, the average rent is £5.24 per sq ft. The tenant provides haulage and logistics services to clients across the UK. The new leases are for 15-year terms with a tenant break option after 10 years. There are five yearly rent reviews to the higher of RPI (2 - 4% cap and collar) and open market value.
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Leigh
On 12 February 2021, the Company acquired a 80,209 sq ft distribution unit for £6.7 million at a 6.25% NIY. This is a sale and leaseback transaction with XPO and the site is let for a term of five years. The rent is £5.50 per sq ft. The site is close to the A580 / M6 in a location well known to the Manager.
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Rotherham
On 10 February 20221, the Company acquired a well-specified 124,966 sq ft distribution unit for £3.8 million from Goodman at a 10.8% NIY. The site is let to Green Forest Solutions for a term of 5 years through to 2025. The rent is £3.50 per sq ft. The site is located close to the M18, M1 and A1(M).
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- Ends -
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For further information contact:
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Urban Logistics REIT plc Richard Moffitt  | +44 (0)20 7591 1600 |
Buchanan Helen Tarbet Henry Wilson George Beale  | +44 (0)20 7466 5000 +44 (0) 7872 604453 +44 (0) 7788 528143 +44 (0) 7450 295099 |
N+1 Singer - Nominated Adviser and Broker James Maxwell / James Moat (Corporate Finance) Alan Geeves / James Waterlow / Sam Greatrex (Sales) Â | +44 (0)20 7496 3000 |
Panmure Gordon (UK) Limited - Joint Broker Chloe Ponsonby (Corporate Broking) Emma Earl (Corporate Finance) Â | +44 (0)20 7886 2500 |
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About Urban Logistics REIT
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Urban Logistics REIT plc is a property investment company, quoted on the AIM market of the London Stock Exchange, (AIM: SHED).
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The Company has been established to invest in UK-based 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 properties servicing high-quality tenants. Investment returns will be generated by an experienced management team focusing on quality stock selection and active asset management.
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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 smaller sized lettable space in industrial and logistics real estate across the UK.