Logistics firm acquires three new assets from Durham to Hampshire for £29m
A specialist UK logistics firm has announced the acquisition of three assets in October for a total consideration of £29m at a blended net initial yield of 6.7 per cent.
The assets include two income producing assets providing immediate additional revenue and the forward funding of a development project.
As a result, Urban Logistics has now committed or deployed £132m of capital following its July equity raise with £23m of further investments in advanced stages of contractual progress.
The Company has also recently announced a new pipeline of over £400m of logistics assets, utilising the Company’s proprietary network to source attractive off market deals.
The first acquisition is a 137,962 sq ft facility in Driffield. It is let to Premier Modular Ltd, a modular building manufacturer, until 2032. It was acquired for £8,350,000 at a NIY of 6.44 per cent.
Secondly, Urban Logistics purchased a 239,867 sq ft warehouse at Spennymoor, near Durham. The purchase price paid was £8,650,000 at a NIY of 8.19 per cent.
The third, is a 121,078 sq ft vacant warehouse unit on the Walworth Industrial Estate near Andover. It will undergo a redevelopment while being marketed, aiming for a NIY of 5.8 per cent, at a total cost of £11,950,000.
Richard Moffitt, chief executive, commented: “These assets are excellent additions to our fast growing portfolio, and demonstrate our team’s continuing ability to source well priced, high quality assets off market at favourable terms.
“As we move towards our Main Market listing on the London Stock Exchange, we remain committed to our proven strategy to acquire medium sized last mile logistics assets, in key locations, with excellent transport links.
“Our properties are all key to our tenants’ operations, and we seek to add value through active asset management and improvements in environmental performance.”
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