Urban Logistics REIT has acquired a logistics site in the Wirral for £16.3m and announced rent collection for the first quarter of 2021 was 99%.
The group has bought the 169,963 sq ft property in Bromborough at a net initial yield of 5.0% as it continues to deploy the proceeds of its recent fund raise.
The site is let to Great Bear Distribution, part of the Culina Group, which operates a Nestle Cereal contract from the site.
The lease, with a passing rent of £4.97 per sq ft, runs to January 2022 after which a reversionary lease, with a cap and collar rent of £5.15 to £5.50 per sq ft, has been agreed through to January 2032. There is an open market rent review then due in 2027.
Included with the purchase is an acre of land to accommodate any future extensions to the building and yard.
Rent collection
The company has received 99% of rent due for the quarter to March., with the remaining 1% expected to be collected imminently.
[QD comment: This acquisition ticks many boxes. Strong tenant covenant, reversionary rent, asset management opportunity through development land. The asset’s investment characteristics fit perfectly with Urban Logistics REIT’s current portfolio, in the strongest logistics sub-sector – last mile delivery hubs. The strength of the portfolio is reflected in the continued near-100% rent collection rates through the pandemic.]
SHED : Urban Logistics REIT acquires site in Wirral for £16.3m