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Urban Logistics spends £29m buying three properties
5th Nov 2021 12:23
(Sharecast News) - Specialist property investor Urban Logistics announced the acquisition of three assets in October on Friday, for total consideration of £29m at a blended net initial yield of 6.7%.
The AIM-traded real estate investment trust said the assets included two income-producing assets providing immediate additional revenue, and the forward-funding of a development project.
As a result, it had now committed or deployed £132m of capital following its July equity raise at a 5.8% weighted net initial yield, with £23m of further investments in advanced stages of contractual progress.
The company recently announced a new pipeline of over £400m of high-quality logistics assets, using its "extensive proprietary network" to source off-market deals.
Looking at the three acquisitions made in October, Urban Logistics described Driffield as a 137,962 square foot facility leased to Premier Modular, a modular building manufacturer, until 2032.
It was acquired for £8.35m at a net initial yield of 6.44%.
At Spennymoor, the company acquired a 239,867 square foot warehouse let to Stanley Black & Decker, which had a "long association" with the area, with the warehouse adjacent to its manufacturing plant.
The purchase price paid was £8.65m at a net initial yield of 8.19%.
Finally, at Andover, the firm acquired a 121,078 square foot vacant warehouse unit on the Walworth Industrial Estate.
The building was situated close to major roads in an area with a "very low" vacancy rate, and with growing rental levels.
It would undergo a comprehensive redevelopment while being marketed, aiming for a net initial yield of 5.8%, at a total cost including refurbishment of £11.95m.
"These assets are excellent additions to our fast growing portfolio, and demonstrate our team's continuing ability to source well priced, high quality assets off market at favourable terms," said chief executive officer Richard Moffitt.
"As we move towards our main market listing on the London Stock Exchange, we remain committed to our proven strategy to acquire medium sized last mile logistics assets, in key locations, with excellent transport links.
"Our properties are all key to our tenants' operations, and we seek to add value through active asset management and improvements in environmental performance."
At 1200 GMT, shares in Urban Logistics were up 0.79% at 176.89p.
The AIM-traded real estate investment trust said the assets included two income-producing assets providing immediate additional revenue, and the forward-funding of a development project.
As a result, it had now committed or deployed £132m of capital following its July equity raise at a 5.8% weighted net initial yield, with £23m of further investments in advanced stages of contractual progress.
The company recently announced a new pipeline of over £400m of high-quality logistics assets, using its "extensive proprietary network" to source off-market deals.
Looking at the three acquisitions made in October, Urban Logistics described Driffield as a 137,962 square foot facility leased to Premier Modular, a modular building manufacturer, until 2032.
It was acquired for £8.35m at a net initial yield of 6.44%.
At Spennymoor, the company acquired a 239,867 square foot warehouse let to Stanley Black & Decker, which had a "long association" with the area, with the warehouse adjacent to its manufacturing plant.
The purchase price paid was £8.65m at a net initial yield of 8.19%.
Finally, at Andover, the firm acquired a 121,078 square foot vacant warehouse unit on the Walworth Industrial Estate.
The building was situated close to major roads in an area with a "very low" vacancy rate, and with growing rental levels.
It would undergo a comprehensive redevelopment while being marketed, aiming for a net initial yield of 5.8%, at a total cost including refurbishment of £11.95m.
"These assets are excellent additions to our fast growing portfolio, and demonstrate our team's continuing ability to source well priced, high quality assets off market at favourable terms," said chief executive officer Richard Moffitt.
"As we move towards our main market listing on the London Stock Exchange, we remain committed to our proven strategy to acquire medium sized last mile logistics assets, in key locations, with excellent transport links.
"Our properties are all key to our tenants' operations, and we seek to add value through active asset management and improvements in environmental performance."
At 1200 GMT, shares in Urban Logistics were up 0.79% at 176.89p.