Urban Logistics REIT PLC GBP22m of Acquisitions and Rent Collection Update (5910U)
April 07 2021 - 1:00AM
UK Regulatory
TIDMSHED
RNS Number : 5910U
Urban Logistics REIT PLC
07 April 2021
Urban Logistics REIT plc
("Urban Logistics" or the "Company")
GBP22 Million of Acquisitions and Rent Collection Update
Urban Logistics, (AIM: SHED) the specialist UK logistics REIT,
announces the acquisition of two assets for a total consideration
of GBP21.7 million at a 6.14% NIY.
Richard Moffitt, Chief Executive, commented:
"We are delighted to announce the acquisition of these
high-quality assets in Warrington and Edinburgh which are well
positioned to deliver essential goods that "last mile" to customers
and businesses in two important local markets. In line with our
strategic focus of value enhancement, both assets offer asset
management opportunities in the short to medium term given the low
passing rents."
The Acquisitions
Warrington
On 6 April 2021, the Company acquired a well-specified and
recently refurbished 110,859 sq ft distribution unit for GBP8.5
million at a 6.05% NIY. It is let to Mark Thompson Transport, part
of Kinaxia Logistics, for a term of 10 years through to 2030. The
rent is GBP4.94 per sq ft and there is an open market rent review
in 2025. This asset is close to the arterial M6/M56
interchange.
Edinburgh
The Company has exchanged contracts on an asset in Milton Link,
Edinburgh. The 7-acre site comprises a 75,478 sq ft warehouse,
which trades as 'The Range', and a 'drive-through' of 1,845 sq ft
let to Costa Coffee. The asset is to be purchased for GBP13.2
million at a 6.2% NIY and is located 5km east of Edinburgh city
centre. The rent for the warehouse is GBP10.51 per sq ft and is let
through to 2033 with 5 yearly rent reviews. The 'drive-through'
rent is GBP40.65 per sq ft and the building is let through to 2034.
This asset has reversionary long-term income and asset management
potential.
Rent Collection Update
The Company has received 99% of rent due for the quarter to
June. The remaining 1% is expected to be collected imminently.
M1 Agency Fees
The Company has incurred, on an arm's length and commercial
basis, property agency fees from M1 Agency LLP of GBP85,000 for the
Warrington acquisition. 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 acquisition have
been aggregated with all fees paid to M1 Agency LLP since 1 March,
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 GBP511,000 and are 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
fair and reasonable insofar as the Company's shareholders are
concerned.
- 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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