Pacific Industrial & Log REIT PLC Portfolio acquisition (1472S)
September 28 2017 - 10:53AM
UK Regulatory
TIDMPILR
RNS Number : 1472S
Pacific Industrial & Log REIT PLC
28 September 2017
Pacific Industrial & Logistics REIT plc
("Pacific Industrial & Logistics", the "Company" or the
"Group")
28 September 2017
Portfolio acquisition and deployment of Placing proceeds
The Board of Directors of Pacific Industrial & Logistics
REIT plc (AIM: PILR), the specialist UK industrial and logistics
properties REIT, is pleased to announce that it has completed the
off-market acquisition of a portfolio of 9 logistics assets for a
total consideration of GBP45.5m (the "Acquisition"). The purchase
price represents a net initial yield of 7.3%.
The Acquisition has been financed from the proceeds of the
recent placing, completion of which was announced on 16 August
2017. The remaining proceeds of the placing will be used, together
with debt finance where appropriate, to fund acquisitions from the
Company's existing pipeline of potential transaction
opportunities.
The Acquisition is in line with the Company's investment policy
and the portfolio of single-let assets are well located across the
UK. The portfolio's logistics occupiers include Culina, XPO,
Sainsbury's and Travis Perkins. The assets are close to established
regional transport hubs in urban or last-mile locations where there
is strong occupier demand.
The acquisition price reflects an average capital value of GBP61
per sq. ft which is well below replacement cost. The portfolio has
an attractive 7.3% running yield, low average rents of GBP4.80 per
sq. ft. and a weighted average unexpired lease term of 2.5 years
which presents opportunities to grow both the income and asset
value.
Richard Moffitt commented: "We are delighted to complete the
acquisition of this portfolio of well-located last-mile and urban
logistics sites, thereby deploying a substantial proportion of the
capital raised through the Company's recent placing. The portfolio
offers a range of asset management opportunities in the short to
medium term which we have already begun to progress.
As we look to deploy the remainder of the proceeds from the
placing and build a bigger business, we have a number of
transactions in solicitors hands and in the due diligence process.
We will update shareholders with further news in due course "
For further information regarding Pacific Industrial &
Logistics REIT plc:
Pacific Industrial &
Logistics REIT Plc
Richard Moffitt
Christopher Turner
Sam Tucker +44 (0) 207 591 1600
Canaccord Genuity - Nominated
Adviser and Joint Financial
Adviser
Bruce Garrow / Charlie
Foster +44 (0)20 7523 8000
Kinmont- Joint Financial
Advisor
Mat Thackery +44 (0)20 7087 9100
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
About Pacific Industrial & Logistics REIT
Pacific Industrial & Logistics REIT plc is a property
investment company, quoted on the AIM market of the London Stock
Exchange.
The Company has been established to invest in UK based
industrial and logistics properties with a view to delivering
attractive dividends and capital returns to its shareholders. The
investment strategy is focused on smaller single let industrial and
logistics properties in key geographical locations 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 (in particular due to growth in
e-commerce and investment by retailers in their associated supply
chain) and a decline in the supply of lettable space in industrial
and logistics real estate across the UK (being more than one third
lower than the most recent peak of 2009).
Acquisitions are targeted in the 6.5 to 7.5 per cent. Net
Initial Yield bracket (with affordable underlying rents in the
region of GBP4.50 to GBP5.50 per square foot), on an overall LTV of
35 to 40 per cent. with a significant margin over financing costs,
thus presenting an attractive income, capital growth and total
return proposition.
The Company's results for the period from IPO on 13(th) April
2016 to 31(st) March 2017 saw a 22.6 per cent total shareholder
return, including aggregate dividends of 6 pence per ordinary share
on an IPO price of 100p.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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