Urban Logistics REIT has acquired three assets for a total of £29.0m at a blended net initial yield (NIY) of 6.7%, as it continues deployment of its recent equity raise.
The assets include two income producing assets providing immediate additional revenue and the forward funding of a development project.
As a result Urban Logistics has now committed or deployed £132m of capital following its July equity raise (5.8% weighted NIY), with around £23m of further investments in advanced stages of contractual progress.
The company has also recently announced a new pipeline of over £400m of logistics assets.
Richard Moffitt, chief executive, commented: “These assets are excellent additions to our fast growing portfolio, and demonstrate our team’s continuing ability to source well priced, high quality assets off market at favourable terms.
“As we move towards our Main Market listing on the London Stock Exchange, we remain committed to our proven strategy to acquire medium sized last mile logistics assets, in key locations, with excellent transport links. Our properties are all key to our tenants’ operations, and we seek to add value through active asset management and improvements in environmental performance.”
The acquisitions
Driffield
This is a 137,962 sq ft facility let to Premier Modular Ltd, a leading modular building manufacturer, until 2032. It was acquired for £8.35m at a NIY of 6.44%.
Spennymoor
This is a 239,867 sq ft warehouse at Spennymoor, near Durham. The unit is let to Stanley Black & Decker, who have a long association with the area, and this warehouse is adjacent to their manufacturing plant. The purchase price paid was £8.65m at a NIY of 8.19%.
Andover
A 121,078 sq ft vacant warehouse unit on the Walworth Industrial Estate near Andover. The building is situated close to major roads in an area with a very low vacancy rate and with growing rental levels. It will undergo a comprehensive redevelopment while being marketed, aiming for a NIY of 5.8%, at a total cost (including refurb costs) of £11.95m.
SHED : Urban Logistics REIT’s spending spree continues