Urban Logistics REIT (SHED) has exchanged contracts to sell five assets as part of a portfolio for £30m, reflecting a yield of 4.8%.
The sale is in line with SHED’s stated strategy of active portfolio management and value optimisation and represents a 35.4% uplift on the 30 September 2020 book values.
The proceeds will be reinvested into its acquisition pipeline of opportunities.
[QD comment: The sale is both an illustration of SHED’s ability to drive value through asset management initiatives, with new rents and lease terms agreed on all the assets since acquisition, and the heady logistics investment market. Crystalising profits on assets that have been through the asset management cycle and ploughing the proceeds into assets with growth potential should super-charge returns.]
The five assets are located in Bedford, Northampton (two warehouses), Leicester and Chesterfield and have been sold to a joint venture between The Carlyle Group and ARA Dunedin. They are let with an average WAULT of 7.4 years.
Richard Moffitt, chief executive, said: “I am extremely pleased with this sale which has realised a strong return for shareholders. Since we started out on our journey in 2016, we have achieved considerable success creating, then realising value across our portfolio once available asset management initiatives have been completed. This deal is the latest example of our proven track record of value creation.
“The funds realised from these sales will be quickly redeployed in acquiring further assets from our pipeline.”
SHED : Urban Logistics REIT sells five assets at huge valuation uplift