Urban Logistics REIT PLC GBP23m Forward Funding of New Assets (9336Q)
March 03 2021 - 2:00AM
UK Regulatory
TIDMSHED
RNS Number : 9336Q
Urban Logistics REIT PLC
03 March 2021
Urban Logistics REIT plc
("Urban Logistics" or the "Company")
GBP23 Million Forward Funding of New Logistics Assets
Urban Logistics, (AIM: SHED) the specialist UK industrial and
logistics REIT, is pleased to announce the GBP23.0 million forward
funding of two development sites.
Richard Moffitt, Chief Executive, commented:
"Covid-19 has highlighted the importance of warehousing and
logistics real estate, especially the scarce, high-quality,
single-occupier regional and last mile urban properties on which
the Company focuses.
"The development programme announced today, which we have
sourced off market, will add further high-quality new assets to the
Company's portfolio at a time when smaller urban logistics
warehouses are in short supply. Given the strength of demand for
space from occupiers seeking representation in the East Midlands
market, we expect to achieve favourable lease terms on each of the
assets with high quality tenant counterparties."
Five New Logistics Assets
The Company has exchanged contracts with Wilson Bowden
Developments Limited, conditional on receipt of planning
permission, for the forward funding of five high-quality urban
logistics assets at Nottingham and Leicester (together the
"Acquisition"). All assets are expected to achieve an EPC 'A'
rating.
The maximum commitment for the Acquisition is GBP23.0 million
and will be financed from a combination of the Company's cash
resources, the sale of logistics properties and debt financing. The
development yield on cost is 6.12%.
The 8.1-acre site at Blenheim Park, Nottingham, will comprise
four units with a total gross internal floor area of 166,330 sq ft.
Blenheim Park benefits from a location that is 1 mile from junction
26 of the M1.
The 2.5-acre site at Optimus Point, Leicester, will comprise one
unit with a gross internal floor area of 43,850 sq ft. Optimus
Point benefits from a location that has direct access to junction
21a of the M1.
During construction, which is expected to commence in September
2021, the Company will benefit from a 5.5% interest rate coupon on
the forward funding provided. Practical completion is anticipated
between September 2022 and February 2023 . The Company has an
option over two further sites until July 2021 which are also in
locations seeing strong rental growth and yield compression for new
'Grade A' stock.
- 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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END
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