Urban Logistics Regulatory News (SHED)

Urban Logistics REIT plc

("Urban Logistics" or the "Company")

Portfolio and asset acquisitions

Urban Logistics, (AIM: SHED) the specialist UK industrial and logistics REIT, announces that on 20 September 2019 it exchanged contracts to acquire a portfolio of six parcel distribution depots from Connect Group plc, for a total consideration of £9.9 million (before purchaser costs) at a 7.04% net initial yield, (the "Connect Portfolio").

The Company also announces the purchase of two logistics properties in Sittingbourne and Thatcham for £5.3 million at a 5.9% blended net initial yield, extending the portfolio's weighting across south east England. The warehouses are 21,875 sq ft and 26,478 sq ft respectively and let to DHL Parcel UK.

These acquisitions are being funded from cash and existing bank facilities.

The Connect Portfolio

The portfolio comprises 84,872 sq ft of warehousing with a low average site cover of approximately 18%. A mix of freehold and long leasehold properties, the depots are located in Coventry, Newport, Plymouth, Leighton Buzzard, Andover and Perth.

Completion is expected on or around 27 September 2019 for the freehold properties and by early November for the leasehold properties.

The depots will be leased back to a subsidiary of Connect Group plc, Tuffnells Parcels Express Limited ("Tuffnells"), for 20 years on a fixed rental uplift (minimum of 1.0% to a maximum of 4.0% per annum, cap and collar, linked to RPI). Connect Group plc will act as guarantor. Tuffnells is a business-to-business distributor specialising in irregular dimensions and weights, serving small and medium sized companies across the UK. Post-acquisition, Tuffnells will represent approximately 6.0% of the Company's rent roll.

The Company continues to evaluate acquisition opportunities across three investment strands: business-to-business parcel depots, last mile warehouses and the forward funding of new logistics properties, (with any forward funding provided being less than 10% of gross asset value). This will diversify and modernise the portfolio, in a sustainable manner, and ensure it is well placed to capture rental growth.

Richard Moffitt, Chief Executive, commented:

"We continue to focus on creating value across the portfolio and securing attractive acquisitions. We're delighted to have further diversified our portfolio, through the leasing agreement with Tuffnells.

"Urban Logistics remains real estate's top performing sub-sector. Despite the perceived uncertainties created by the political backdrop, we remain focused on growing our portfolio and undertaking asset management initiatives.

"Looking ahead, we have a high-quality acquisition pipeline and continue to assess the potential for additional financing to grow the business. We remain confident in our ability to continue sourcing opportunities which can perform consistently well in the longer term."

- Ends -

For further information contact:

About Urban Logistics REIT

Urban Logistics REIT plc is a property investment company, quoted on the AIM market of the London Stock Exchange, (AIM: SHED).

The Company has been established to invest in UK-based industrial and 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 industrial and logistics properties servicing high-quality tenants. Investment returns will be generated by an experienced management team focusing on quality stock selection and active asset management.

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.