Urban Logistics Regulatory News (SHED)

25th August 2022

Urban Logistics REIT plc

("Urban Logistics" or the "Company")

Acquisition of £90 million of assets with significant value creation potential

Urban Logistics (LON: SHED), the last mile logistics focused REIT, has acquired £90 million of assets at a blended net initial yield ("NIY"), post near term asset management, of 4.5%, with significant potential for further value creation through active asset management.

Key Highlights:

· Five properties acquired, with NIY ranging from 4.2% to 6.5%; 4.5% on a blended basis.

· Four properties are income-producing and one property is vacant.

· One significant property of 97,362 sq. ft. acquired in Southall, West London.

Richard Moffitt, Chief Executive, commented:

"During recent market volatility we have been deliberately patient in our deployment, and that patience has been rewarded by our ability to acquire these properties in prime locations on advantageous terms.

"Our occupational market, with its focus on supply chains for essential goods, remains strong with continued upward pressure on rents. We firmly believe that, at any stage in the property cycle, if we improve lease lengths we will see yield compression.

"We therefore see substantial potential valuation increases in these acquisitions, driven by our asset management plans."

Acquisitions:

Brent Road, Southall

A 97,362 sq. ft. warehouse in West London, fitted out for frozen food storage. The purchase price paid was £46,000,000 at a NIY of 1.9% with two months remaining on the lease. The property is highly reversionary, with the current tenant paying £10 psf and rents in the area being in excess of £25 psf. We anticipate quickly letting the property to capture this reversionary yield, and anticipate signing a new long term lease providing a yield of 4.2%, which should create a significant valuation increase.

Beveridge Lane, Bardon

A 249,211 sq. ft. logistics warehouse two miles from the M1. The purchase price paid was £35,385,000 at a NIY of 4.7%. The unit is let to DHL Supply Chain Ltd on a lease expiring in 2027. The asset has near term asset management potential.

Downgate Drive, Sheffield

A 31,105 sq. ft. newly refurbished industrial warehouse close to the M1. The purchase price paid was £3,120,000 at a target NIY of 6.1%. The unit is currently vacant and is being marketed.

Fowler Road, Dundee

A 29,834 sq. ft. logistics warehouse on the West Pitkerro Industrial Estate. The purchase price paid was £2,800,000 at a NIY of 6.5%. The unit is let to the DPD Group on a lease expiring in 2027.

Silkstone Road, Barnsley

A 24,230 sq. ft. industrial warehouse located in the Dodworth Business Park. The purchase price paid was £2,600,000 at a NIY of 5.2%. The unit is let to a vintage clothing operator, who process and sort textile recycling on site, with the lease expiring in 2029. The low rent of £6.00 psf is subject to an open market review in 2024 offering good reversionary potential, with rents in this area being in excess of £7.50 psf.

- Ends -

 About Urban Logistics REI

Urban Logistics REIT plc (LON: SHED) is a FTSE 250 property investment company. The Company is the only listed London-listed REIT to focus on specialist last mile / last touch logistics assets, with a tenant base which delivers essential goods within the UK. The Company's strategy is to invest in mid-sized logistics properties with the objective of generating attractive dividends and capital returns through active asset management.

Urban Logistics' investment management team, led by Richard Moffitt and Christopher Turner, has over 50 years' experience in investing in the logistics market within the broader real estate market. The team's ability to source vital and strategically located mid-sized single let properties, with high-quality tenants, off-market at favourable terms, creates considerable value for shareholders. Tenants include Amazon, GXO, DHL, Hermes, DPD, Boots, Unipart (for NHS) and J Sainsbury Plc.

Buying well and pursuing additional value enhancing asset management initiatives has driven the Company's growth, enabling Urban Logistics to grow from a £10m market cap company at IPO in April 2016 to c. £800m at present.