Urban Logistics REIT (SHED) has provided an update on its pipeline of acquisitions.
SHED says that its manager, Pacific Capital Partners Limited, has significant experience in sourcing quality properties off-market with opportunities for significant value creation. It constantly reviews the market for potential investment opportunities and has identified a large pipeline of high-quality logistics properties which meet the SHED’s investment policy and objectives. As at the date of this announcement, SHED has said that total pipeline is in excess of £300m. This pipeline includes units for an aggregate consideration of £146m where the manager is in advanced negotiations and further properties with an aggregate consideration of more than £150m where the manager is in preliminary stage discussions.
The advanced portfolio assets, which comprise three portfolios and 12 single assets, have a weighted average unexpired lease term of approximately 7.8 years and are expected to have a weighted average net initial yield of approximately 6.8%.
SHED is considering a capital raise
SHED says that it has a strategy of utilising the platform of its manager to grow the company and deliver attractive income and capital returns to its shareholders. To that end the company is now considering an equity fundraising, alongside debt finance where appropriate, to enable it to capitalise on the pipeline, and will commence a period of engagement with existing and potential new investors. Any equity fundraising would be conditional upon, amongst other things, the approval of shareholders passing the resolutions necessary to authorise the fundraising.
Whilst there can be no assurance that it will complete the acquisition of any of the pipeline properties on the expected terms or at all, SHED has said that it believes that the net proceeds of a potential fundraise would be substantially invested within a three-month period following completion.
SHED: Urban Logistics pipeline worth more than £300m