Urban Logistics REIT PLC GBP16 Million Acquisition and Rent Collection Update (7658L)
15 January 2021 - 6:00PM
UK Regulatory
TIDMSHED
RNS Number : 7658L
Urban Logistics REIT PLC
15 January 2021
Urban Logistics REIT plc
("Urban Logistics" or the "Company")
GBP16 Million Acquisition and Rent Collection Update
Urban Logistics, (AIM: SHED) the specialist UK logistics REIT,
is pleased to announce an acquisition and rent collection update
for the quarter to March 2021.
Acquisition
The Company has acquired off-market a logistics site in
Bromborough, Wirral for GBP16.3 million at a 5.0% NIY, as part of
the deployment of capital raised from the Company's recent
fundraising.
The 169,963 sq ft property was constructed in 2011/12 to an
institutional specification with a 19 metre eaves height and a
BREEAM Excellent standard. The site is let to Great Bear
Distribution, part of the Culina Group, which operates a Nestle
Cereal contract. The manufacturing plant is conveniently located
adjacent to the property. Included with the purchase is an acre of
land to accommodate any future extensions to the building and yard.
The lease, with a passing rent of GBP4.97 per sq ft, runs to
January 2022 after which a reversionary lease, with a cap and
collar rent of GBP5.15 to GBP5.50 per sq ft, has been agreed
through to January 2032. There is an open market rent review then
due in 2027. The site is located on the Wirral International
Business Park, 1 mile from the M53, making it well-suited to the
'last touch logistics' profile which is characteristic of Urban
Logistics' portfolio.
Rent Collection Update
The Company has received 99% of rent due for the quarter to
March. The remaining 1% is expected to be collected imminently. All
tenants remain fully operational.
Richard Moffitt, Chief Executive, commented:
"This is another high quality off-market acquisition that formed
part of our pipeline. This site with its reversionary lease is
well-located and offers an excellent opportunity for value
enhancement over the long term through active asset management.
"Despite the lockdown restrictions that are once again in place,
I'm pleased to report that all of our tenants are operational. Our
strong levels of rent collection are evidence of our proactive
approach to strong covenants and our preference for tenants
involved in the supply of essential products and consumer goods.
"
- Ends -
For further information contact:
Urban Logistics REIT plc
Richard Moffitt +44 (0)20 7591 1600
Buchanan +44 (0)20 7466 5000
Helen Tarbet +44 (0)7872 604453
Henry Wilson +44(0) 7788 528143
George Beale +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.
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