Urban Logistics REIT plc
("Urban Logistics" or the "Company")
Three Logistics Acquisitions For £22.9 Million
Urban Logistics, (AIM: SHED) the specialist UK logistics REIT, announces the acquisition of three logistics assets for a total consideration of £22.9 million in Huntingdon, Northampton and Fareham as part of the deployment of the capital raised from the Company's recent fundraising.
Richard Moffitt, Chief Executive, commented:
"These logistics assets are well located in the Midlands and South East for delivering essential goods the "last mile" to customers and businesses.
"In line with our strategic focus, all of these assets are single-let properties servicing high quality tenants and provide excellent opportunities for value enhancement through active asset management.
"The site in Huntingdon is currently undergoing refurbishment and we have secured a leading multinational delivery services company as a tenant on a 15-year lease once work is completed in May 2021. The Northampton site is a recently refurbished logistics unit well located near the M1, let to Trans Global, and the site in Fareham is let to Amazon and is in a prime local location offering reversionary potential."
On 2 December 2020, the Company acquired a 129,222 sq ft warehouse from Dart Products Limited for £2.1 million and is spending a further £4.6 million on a complete refurbishment of the warehouse, due to complete in May 2021. Once the refurbishment is complete, the property will be let to a multinational delivery services company on a 15-year lease. The rent will be £5.38 per sq ft and there is a five-yearly rent review linked to CPI with a cap and collar (2% - 5%). The property is located on the St Peters Road Industrial Estate with access to the A14 and A1/M.
On 10 December 2020, the Company acquired a recently refurbished 49,433 sq ft distribution unit for £5.2 million at a 5.8% NIY. The site is let to Trans Global for a term of 10 years through to 2030. The rent is £6.57 per sq ft and there is an open market rent review in 2025. The site is well located close to the M1.
On 15 December 2020, the Company acquired a well-specified institutional quality 71,160 sq ft distribution unit for £10.9 million from M&G at a 6.0% NIY. The site is let to Amazon UK for a term of 5 years through to 2025. The rent is £9.80 per sq ft. The site is located near the M27 in an established commercial centre between Portsmouth and Southampton, one of the most constrained parts of the UK logistics market.
M1 Agency Fees
The Company has incurred, on an arm's length basis, commercial agency fees from M1 Agency LLP, in connection with the above acquisitions, of £142,720. M1 Agency LLP is a partnership in which Richard Moffitt is a designated member. In accordance with Rule 16 of the AIM Rules, fees payable in respect of the acquisitions have been aggregated with all fees previously paid to M1 Agency LLP since 8 April 2020, being the date of the Company's last related party disclosure and associated fairness opinion, in respect of M1 Agency LLP. These aggregated fees total £555,932 and are therefore considered a related party transaction for the purposes of the AIM Rules.
The independent Directors, having consulted with N+1 Singer Advisory LLP, consider the terms of the related party transaction are fair and reasonable insofar as the Company's shareholders are concerned.
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For further information contact:
Urban Logistics REIT plc
+44 (0)20 7591 1600
+44 (0)20 7466 5000
+44 (0) 7872 604453
+44 (0) 7788 528143
+44 (0) 7450 295099
N+1 Singer - Nominated Adviser and Broker
James Maxwell / James Moat (Corporate Finance)
Alan Geeves / James Waterlow / Sam Greatrex (Sales)
+44 (0)20 7496 3000
Panmure Gordon (UK) Limited - Joint Broker
Chloe Ponsonby (Corporate Broking)
Emma Earl (Corporate Finance)
+44 (0)20 7886 2500
About Urban Logistics REIT
Urban Logistics REIT plc is a property investment company, quoted on the AIM market of the London Stock Exchange, (AIM: SHED).
The Company has been established to invest in UK-based logistics properties with the objective of generating attractive dividends and capital returns for its shareholders. Its investment strategy focuses on strategically located smaller single let properties servicing high-quality tenants. Investment returns will be generated by an experienced management team focusing on quality stock selection and active asset management.
A number of structural and commercial factors currently support the attractive opportunity in the last mile/regional industrial and logistics real estate sub-sectors targeted by the Company, including: strong occupier demand, (driven by the growth of e-commerce and investment by retailers in their associated supply chain) and a decline in the supply of smaller sized lettable space in industrial and logistics real estate across the UK.