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Urban Logistics REIT splashes £34.3m on logistics buy

Urban Logistics REIT has acquired a logistics site for £34.3m as it continues to deploy the proceeds of its recent equity raise.

The company has bought the site in Hoddesdon, Hertfordshire, at a net initial yield of 5.4%. The 12-acre site comprises five units, three of which are let to Müller UK & Ireland Group, a major producer and distributor of dairy products, until 2030 with a rent review in 2025, at a passing rent of £8.75 per sq ft.

The other two units are currently vacant and provide an opportunity for considerable value enhancement through active asset management. The company said it had received several expressions of interest from potential occupiers.

The site is located seven miles from the M25 and benefits from excellent access, making it a highly attractive “last mile” distribution hub.

The deal comes hot on the heels of the announcement of the acquisition of five assets yesterday for £33.1m.

Richard Moffitt, chief executive, said: “This is another high quality off-market acquisition that formed part of our existing pipeline. The site is well located in the South East for delivering essential goods the “last mile” to customers and businesses. Significantly, it offers excellent opportunities for value enhancement through active asset management.”

SHED : Urban Logistics REIT splashes £34.3m on logistics buy

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