Urban Logistics REIT has announced that it has sold a site located on Postley Road, Bedford for £9.2 million “realising a Total Property Return of 74%”. (The company defines total property return as capital growth plus net rental income plus sale profit expressed as a percentage of the purchase price. It says that it will adopt this metric going forward when reporting on disposals.) The purchaser is Apperly Estates Limited and the units have been sold, fully let, with an average WAULT of 5.9 years. They have undergone extensive asset management, with new rents agreed at £6.52 per square foot on Unit A and £6.26 per square foot on Unit B.
Postley Road, Bedford
The Postley Road site was purchased at the time of the Company’s IPO in April 2016 for £5.5 million and comprises four industrial units together with a piece of development land that cover 85,012 square feet. The development land, which the purchaser has an option to acquire if planning permission is granted (for £0.5 million), is not included in the disposal and will be retained by the Company.
Comments from Richard Moffitt, Chief Executive of Urban Logistics REIT
Richard says, “I am extremely pleased with this disposal which has realised a very strong return for shareholders three years on from purchase.
Since our IPO we have achieved considerable success creating then realising value across our portfolio once available asset management initiatives have been completed.
Looking ahead, we remain selectively acquisitive and have an extensive pipeline of opportunities, focusing on properties that serve the ‘last mile’ needs of a diverse tenant base, especially those responding to the challenges of e-commerce and supply chain constraints.