Pacific Industrial & Log REIT PLC Acquisition (1115W)
November 10 2017 - 2:00AM
UK Regulatory
TIDMPILR
RNS Number : 1115W
Pacific Industrial & Log REIT PLC
10 November 2017
Pacific Industrial & Logistics REIT plc
("Pacific Industrial & Logistics" or the "Company")
Acquisition
Pacific Industrial & Logistics, (AIM: PILR) the specialist
UK industrial and logistics REIT, is pleased to announce that it
has completed the acquisition of a logistics asset at Victoria
Road, Seacroft, Leeds for a total consideration of GBP2.8 million,
(the "Acquisition"). The purchase price represents a net initial
yield of 6.8% and the site has a rent of GBP5.00 per sq ft, with
reversionary potential.
The Acquisition is consistent with the Company's investment
strategy of identifying attractively priced stock with asset
management potential; and is well located to the north east of
Leeds City Centre, close to the A64. It comprises a modern 41,494
sq ft logistics warehouse which is let to Komori UK Limited and
Pharmacy2u Limited on leases through to 2020 and 2022 respectively.
Both have outstanding rent reviews.
The Acquisition has been financed from the Company's existing
resources, following its placing in August 2017. The Company
continues to evaluate a number of high-quality opportunities in its
pipeline and will deploy its capital, together with debt finance
where appropriate, to fund acquisitions that meet its investment
criteria.
Commenting on the Acquisition, Richard Moffitt, Chief Executive,
said:
"The acquisition of this well-located institutional-grade
logistics property offers attractive asset management opportunities
in line with our investment strategy.
"We remain opportunistically acquisitive, focusing on assets
that serve the 'last mile' needs of a diverse tenant base,
especially those responding to the challenges of e-commerce and
supply chain constraints."
- Ends -
For further information contact:
Pacific Industrial & Logistics
REIT plc
Richard Moffitt
Christopher Turner
Sam Tucker +44 (0)20 7591 1600
Canaccord Genuity - Nominated
Adviser and Joint Financial
Adviser
Bruce Garrow
Charlie Foster +44 (0)20 7523 8000
Montfort - Financial PR
and IR adviser
Nick Miles
Olly Scott +44 (0)78 1234 5205
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, (AIM: PILR).
The Company has been established to invest in UK based
industrial and 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 industrial and logistics 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 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 6.5-7.5% net initial yield
bracket, (with affordable underlying rents in the region of
GBP4.50-GBP5.50 per sq ft), on an overall LTV of 35-40% and a
significant margin over financing costs, thus presenting attractive
income, capital growth and total return opportunities.
At the time of its results for the period from IPO on 13 April
2016 to 31 March 2017, the Company achieved a 22.6% 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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