Urban Logistics REIT PLC Portfolio Acquisition and Notice of Final Results (4014L)
30 April 2020 - 4:00PM
UK Regulatory
TIDMSHED
RNS Number : 4014L
Urban Logistics REIT PLC
30 April 2020
Urban Logistics REIT plc
("Urban Logistics" or the "Company")
Portfolio Acquisition
and
Notice of Final Results
The Company announces that on 29 April 2020 it acquired seven
properties (the "Crown Portfolio") for a total consideration of
GBP47.2 million.
Highlights
-- GBP47.2 million portfolio acquisition at a net initial yield
("NIY") of 7.0%
-- Seven distribution sites, with average warehouse size of
84,105 sq ft, located in Aberdeen, Huntingdon, Blackpool, Ipswich,
Newmarket, Plymouth and Rotherham
-- Low capital value of GBP68 per sq ft
-- Low average passing rent of GBP4.96 per sq ft
-- Acquisitions are fully funded from the proceeds of March's
GBP136.1 million equity capital raise
Richard Moffitt, Chief Executive, commented:
"We are delighted to have continued strengthening the Company's
portfolio, investing a further GBP47 million into regional
warehouses which support the distribution of staple goods across
the UK.
"These properties are well located, close to labour availability
and population centres, have strong tenant covenants and offer a
range of asset management opportunities.
"We have now deployed GBP103 million of the GBP136 million
raised in March and will continue to adopt a patient and cautious
approach as we build the portfolio. Our strong balance sheet
enables us to look opportunistically at properties which offer
attractive returns and complement our existing portfolio.
"Our tenants continue to trade well and all of our rents have
now been collected. We remain convinced of the attractive
opportunities ahead across the Company's portfolio and the
mid-sized logistics warehousing sector more generally."
Crown Portfolio
The Crown Portfolio comprises seven properties which are being
acquired for a consideration of GBP47.2 million, equivalent to a
7.0% NIY. The acquisition took place off market through the
purchase of a Jersey unit trust from funds controlled by Legal
& General Investment Management.
The Crown Portfolio's tenants include Giant Booker (three
sites), Anglian Water, Hermes Parcelnet and Pegler plc. Included
within the portfolio is a site in Aberdeen which is multi-let and
subject to a 12-month rental guarantee on its two vacant units.
With a weighted average unexpired lease term of eight years the
portfolio offers asset management opportunities as well as secure
income from high-quality tenants.
Giant Booker, the food wholesaler owned by Tesco plc, represents
31% of the portfolio's rental income.
Notice of Final Results
The Company intends to announce its Final Results for the year
ended 31 March 2020 on or around 29 May 2020.
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF ARTICLE 7 OF REGULATION (EU) NO 596/2014 ("MAR").
- Ends -
For further information contact:
Urban Logistics REIT plc
Richard Moffitt +44 (0)20 7591 1600
Montfort - Financial PR and IR adviser
Olly Scott +44 (0)78 1234 5205
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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