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Urban Logistics REIT splashes £15m on two more assets

Urban Logistics REIT has acquired two assets for £15.1m at a 6.0% net initial yield (NIY). The assets include one income producing asset providing immediate additional revenue, and a forward funding development project.

Around £50m of further investments are in advanced stages of contractual progress and are expected to be completed in the near term at a 6.2% NIY. This brings the amount committed or deployed by Urban Logistics REIT since its £108.3m equity raise in July 2021 to £103m.

The acquisitions

In Golborne, Manchester, the company has entered into an agreement to forward fund the redevelopment of a site that will result in a new building of 120,750 sq ft. The new building will be EPC A rated and the development will be BREEAM rated ‘excellent’. The company will spend a maximum of £13.3m, with an expected NIY on cost of 6.2%.

In Letchworth, Hertfordshire, it has acquired a 13,724 sq ft property consisting of two recently refurbished buildings let to Eurocell Building Plastics Ltd and Toolstation Ltd. It was purchased for £1.8m at a NIY of 4.9%. There is an outstanding rent review on one building providing immediate asset management opportunities.

Richard Moffitt, chief executive, said: “We are delighted to announce these latest acquisitions, which once again demonstrate our team’s expertise and deep sector knowledge in successfully acquiring high quality assets in off-market transactions at an attractive blended net initial yield of 6.0%. The acquisitions fit into our strategy to acquire medium sized last mile assets with excellent transport links in areas with strong demand, attracting robust tenants. As anticipated, we continue to see strong market fundamentals and significant opportunities to provide additional value for shareholders through our active asset management approach.”

SHED : Urban Logistics REIT splashes £15m on two more assets

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