Urban Logistics, the specialist UK logistics REIT which recently completed a £250 million equity raise and moved to the Main Market in December, has acquired four assets, using proceeds raised, for a total consideration of £28.6 million.
The value accretive assets include three immediately income-producing properties and the forward funding of a development project in Sheffield.
The company has entered into an agreement to forward fund a new logistics unit at Newhall Road. The agreement is subject to planning, and the development is expected to complete in November 2022, and will comprise a warehouse of 131,500 sq ft.
The building is designed to have excellent environmental credentials, with a BREAM Excellent rating, an EPC of A, and electric vehicle charging points. The project is targeting a 6.0% NIY on cost.
The other assets acquired include a 22,783 sq ft warehouse at Caswell Road, Northampton, let to Tuffnells Parcel Express, a 27,115 sq ft distribution depot at Elland Road, Leicester, let to the Royal Mail Group, and a warehouse facility of 117,031 sq ft near the airport in Dundee, occupied by Hermes Parcelnet.
Richard Moffitt, Chief Executive, said: “We’re pleased to confirm our continued deployment of capital following the close of our recent oversubscribed equity raise. This is testament to our team’s ability to act swiftly and reliably on deal execution.
“As previously stated, we have an excellent pipeline of “last mile / last touch” logistics assets to acquire and the team will be working hard over the coming months, investing in those quality assets that will be accretive to shareholder value, with further acquisitions expected before the end of the year.
“Our strategy of acquiring mid-box last mile logistics assets, in key locations, with excellent transport links has not altered since inception in 2016. We acquire properties which are key to our tenants’ operations, and we continue to create additional performance through active asset management and improved environmental performance.”
