Warehouse focussed REIT Urban Logistics has acquired 4 instant income-producing assets for £72m, at a blended net initial yield (NIY) of 4.6% since February 2022.
The 4 assets acquired have a substantial asset management potential for Urban Logistics as the properties have strong agreements to produce immediate income.
Urban Logistics Assets acquired since February 2022
York Road, London – The company acquired a 94,841 sqft last-mile automotive logistics warehouse, servicing and sales centre in Battersea, London. The property was acquired for £28m at a NIY of 4.2% and is currently rented out to Lookers Motor Group until July 2041. This acquisition marks the first of Central London properties for Urban.
Howden Dyke Road, Yorkshire – Urban paid £24m at a NIY of 5.3% for a distribution warehouse of 287,589 sqft in Goole, Yorkshire. The property is currently rented to E-Buyer until October 2036.
Another distribution warehouse in Goole that Urban Logistics acquired for £16m at a NIY of 4.3% has a square footage of 155,205. The property is rented to Wren Kitchens until October 2036.
Kingsbury Road, North Warwickshire – In Curdworth, North Warwickshire, Urban Logistics bought a 31,187 sqft warehouse on Fairview Industrial Estate for £3.65m at a NIY of 4.3% which has been rented to Personnel Hygiene Solutions until July 2027.
Since the fund raise in December 2021, the group has spent £140m of capital in total at a blended NIY of 5%.
“We are pleased to acquire our first property in central London, on a long lease at 4.2% NIY and with an excellent tenant in place. We think of this as a very exciting opportunity with significant reversion and suitable for a number of last mile solutions,” said Richard Moffitt, Chief Executive Officer, Urban Logistics.
“These acquisitions represent a step forward as we work through our extensive pipeline, with further high yielding assets to come. We remain focused on well let, strategically positioned assets, in existing and emerging logistics hubs.
“Our recent inclusion in the FTSE 250 index underlines our position as a leading player in this market sector, and our reputation as a reliable and nimble counterparty for sellers is enabling us to access off-market transactions at very competitive prices.”
“We expect this flow of acquisitions to continue and expect to make further acquisitions in the near term, with acquisitions in solicitors’ hands bringing our expected blended NIY on capital deployed since the December fund raise to circa 5.4%.”
Urban Logistics shares gained 1.2% to 188p as the REIT acquired 4 new properties, including one in Central London.