Urban Logistics REIT (SHED) has acquired four new assets for £72m, including its first central London property, at a blended net initial yield (NIY) of 4.6%.
The group said all the assets are income producing and benefit from strong covenants, but also come with significant asset management potential.
Following these transactions, the company has deployed in aggregate £140m of capital since its December 2021 £250m fund raise, at a blended NIY of 5.0%
The new acquisitions
- York Road, London
The company has acquired a 94,841 sq ft last mile automotive logistics, servicing and sales centre in York Road, Battersea, London. The purchase price was £28m at a NIY of 4.2%. The unit is let to Lookers Motor Group Ltd until July 2041.
- Howden Dyke Road, Yorkshire
The company has bought two separate assets in the port town of Goole, Yorkshire. Firstly, a 287,589 sq ft distribution warehouse for £24m at a NIY of 5.3%. The unit is let to E-Buyer (UK) Ltd until October 2036. The second asset was a 155,205 sq ft distribution warehouse, which was acquired for £16m at a NIY of 4.3%. The unit is let to Wren Kitchens until October 2036.
- Kingsbury Road, North Warwickshire
The final acquisition announced today was a 31,187 sq ft warehouse on Fairview Industrial Estate, in Curdworth, North Warwickshire. The purchase price was £3.65m at a NIY of 4.3%. The unit is let to Personnel Hygiene Solutions until July 2027.
Richard Moffitt, chief executive, said: “It has been a busy few weeks at Urban Logistics, as we continue to deploy the proceeds from our December 2021 fundraising, on assets with significant scope for shareholder value creation.
“We are pleased to acquire our first property in central London, on a long lease at 4.2% NIY and with an excellent tenant in place. We think of this as a very exciting opportunity with significant reversion and suitable for a number of last mile solutions.
“These acquisitions represent a step forward as we work through our extensive pipeline, with further high yielding assets to come. We remain focused on well let, strategically positioned assets, in existing and emerging logistics hubs.
“Our recent inclusion in the FTSE 250 index underlines our position as a leading player in this market sector, and our reputation as a reliable and nimble counterparty for sellers is enabling us to access off-market transactions at very competitive prices. We expect this flow of acquisitions to continue and expect to make further acquisitions in the near term, with acquisitions in solicitors hands bringing our expected blended NIY on capital deployed since the December fund raise to circa 5.4%.”
SHED : Urban Logistics REIT deploys £72m on new acquisitions