Urban Logistics REIT has bought a further £45m of assets as it continues to deploy the funds of its December 2021 fundraise.
The company has acquired the East Midlands Logistics Hub for £40.7m at a net inital yield of 6.8%. The property consists of a 72-acre site with four logistics units totalling more than 670,000 sq ft. There is also potential for a further 175,000 sq ft of development on the site. The scheme, which is located close to the A1 and A46/M1, is majority let to Asfordby Storage and Haulage (three of the units totalling 665,527 sq ft) on a short term lease, with the remianing unit (6,773 sq ft) let to Royal Mail.
In Lincoln, the group has acquired a logistics asset on Outer Circle Road for £4.2m at a net initial yield of 5.8%. The property consists of a 25,924 sq ft unit on a 2-acre site, which is let to Wickes Building Supplies Limited for a term of 10 years.
The company has now deployed £184m since the December 2021 fundraise, at a blended net initial yield of 5.4%.
Richard Moffitt, chief executive, said: “Our portfolio continues to grow at a substantial pace, having completed 14 transactions since our December 2021 equity raise. As we look ahead, we are optimistic that we can continue to source attractive value accretive acquisitions that are strategically positioned in current and emerging logistics hubs.
“With these latest acquisitions, our blended NIY on all completed transactions since our fund raise in December 2021 is 5.4%, exactly as targeted during the raise.
“East Midlands Logistics Hub (EMLH) near Melton Mowbray sits very well with some of our recent acquisitions, as it provides balance to our portfolio in terms of long income and short term asset management opportunity and we are already talking to occupiers about letting the campus location for fast moving consumer goods. We look forward to completing further acquisitions in the coming weeks and months and are on track to be fully-deployed on a geared basis by the end of June.”
SHED : Urban Logistics REIT deploys further £45m