Urban Logistics is fundraising – Urban Logistics’ existing funds are fully invested or committed and the company has a strong pipeline of attractive off-market opportunities with a weighted average net initial yield of about 6.1% and average rent per square foot of about £5.40.
On 9 June 2021 Urban Logistics said that its board aspires to reach a level of market capitalisation that will justify a move to a Premium Listing on the Main Market of the London Stock Exchange in the near future.
The company now intends to conduct a placing of new ordinary shares at a price of 155p per share and there will be an offer made by the company on the PrimaryBid Platform of up to 4m new ordinary shares at the placing price to provide retail investors with an opportunity to participate in the equity fundraise. Altogether the issue proceeds, based on the sale of a total of 69.8m shares, would be £108m.
In contemplation of a successful placing and assuming no material change in business conditions the board anticipates a move to the Main Market will take place either with, or prior to, the publication of the audited financial results for the current financial year.
The company expects the net proceeds will be deployed within approximately 3 months of receipt of funds and that the new investments made will be accretive to earnings per share from the first full financial year after this share issue.
Urban Logistics has an LTV of 27.9% and a weighted average cost of debt of 2.9% for the year to 30 March 2021. Gearing is expected to remain around these levels following the share issue.
Highlights
- The issue is conditional on certain resolutions being passed at the Annual General Meeting to be held on 12 July;
- The placing price of 155 pence represents:
- a discount of 5.2% to the closing share price of 163.5p on 29 June 2021 (being the last business day prior to this announcement)
- a 3.5% premium to the adjusted EPRA net tangible assets of 149.8p per share as at 31 March 2021. This was calculated using the NAV announced of 152.33p as at 31 March 2021 adjusted for the:
- 4.35p second interim dividend declared on 9 June 2021 and payable to shareholders on the register at the close of business on 18 June 2021
- 1.84p per share of unaudited, estimated EPRA earnings per share accrued during the period to 30 June 2021;
- The manager has identified a significant pipeline of attractive investment opportunities. The majority of these have been sourced off-market;
- The pipeline has an average net initial yield (NIY) of 6.1%;
- Admission of new shares to trading on AIM expected to be on or around 13 July 2021.
SHED : Urban Logistics is fundraising