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Urban Logistics back for more money

Urban Logistics REIT posts 4.6% rise in portfolio valuation

Urban Logistics back for more money – In March 2020 Urban Logistics REIT completed a £136m equity raise, followed by arranging a £151m debt facility (at a reduced all in cost of c.2.66%) replacing the £76m facility previously in place. Since March 2020, Urban Logistics has completed nine acquisitions for a total consideration of £145.7m (6.0% weighted net initial yield) and a further £28.7m has been approved by the board and these transactions are expected to be completed in the short term. The company has therefore invested or committed to invest all of its funds currently available for acquisition.

As at the date of this announcement, the company has identified a pipeline of logistics assets. The near term pipeline of potential acquisitions comprises assets with a consideration of about £389m across 33 assets with a weighted unexpired lease term of about 6.7 years, a current rent roll of about £26.7m a year and with a weighted average net initial yield of approximately 6.43%. The company believes that the net proceeds of a potential fundraise would be substantially invested within a three-month period following completion.

The statement says that Covid-19 has accelerated e-commerce activity and investment into supply chain capacity, leading to an increased requirement for last mile logistics real estate. The Board believes that with a valuation of under £70 per square foot and a low average passing rent of under £5 per square foot the current portfolio has the potential for further value uplift.

On 6 July 2020, the company announced that 98% of rent due for the quarter to September had been collected, with the remaining 2% having now been collected. This follows a strong rent collection in March for the quarter to June when 100% of rents due were collected.

SHED : Urban Logistics back for more money

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