Urban Logistics REIT has announced an Initial Placing, Offer for Subscription and Intermediaries Offer targeting gross proceeds of £200m at a price of 170 pence per share.
Having fully deployed or committed £134m of capital following the company’s £108m July fundraising, the manager has identified a further pipeline of high quality, last mile logistics assets, strategically located in targeted logistics hubs, totalling in excess of £400m. The company said it intends to use the net proceeds of the issue to acquire a significant part of this pipeline.
The issue price represents a discount of 4.23% to the last closing share price of 177.5 pence on 12 November 2021; and a 4.88% premium to the company’s adjusted unaudited EPRA net tangible assets (NTA) of 162.09 pence per share as at 30 September 2021. The adjusted EPRA NTA represents the unaudited EPRA net tangible assets of 164.3 pence per Ordinary Share as at 30 September 2021 adjusted for the payment of its first interim dividend and estimated earnings accrued during the period from 1 October 2021 to 12 November 2021.
The £400m pipeline has a weighted average unexpired lease term of approximately 8.4 years, a weighted average net initial yield of approximately 5.4% and an average rent per square foot of £6.02.
The company said that it expects the net proceeds of the issue to be deployed or committed within three to six months of admission.
SHED : Urban Logistics REIT back for more money