Urban Logistics acquires Crown warehouse portfolio for €53.7m (GB)

Urban Logistics REIT acquires the Crown Portfolio for €53.7m (GB)

Urban Logistics REIT has acquired seven properties known as the "Crown Portfolio" for a total consideration of €53.7m (£47.2m). The portfolio comprises distribution sites with an average warehouse size of 84,105ft², located in Aberdeen, Huntingdon, Blackpool, Ipswich, Newmarket, Plymouth and Rotherham. The deal is fully funded from the proceeds of March's €154.9m (£136.1m) equity capital raise.

 

The Crown Portfolio's tenants include Giant Booker (three sites), Anglian Water, Hermes Parcelnet and Pegler plc. Included within the portfolio is a site in Aberdeen which is multi-let and subject to a 12-month rental guarantee on its two vacant units. With a weighted average unexpired lease term of eight years the portfolio offers asset management opportunities as well as secure income from high-quality tenants.

 

Richard Moffitt, Chief Executive, commented: "We are delighted to have continued strengthening the Company's portfolio, investing a further €53.7m (£47.2m) into regional warehouses which support the distribution of staple goods across the UK. These properties are well located, close to labour availability and population centres, have strong tenant covenants and offer a range of asset management opportunities. We have now deployed €117.2m (£103m) of the €154.9m (£136.1m) raised in March and will continue to adopt a patient and cautious approach as we build the portfolio. Our strong balance sheet enables us to look opportunistically at properties which offer attractive returns and complement our existing portfolio. Our tenants continue to trade well and all of our rents have now been collected. We remain convinced of the attractive opportunities ahead across the Company's portfolio and the mid-sized logistics warehousing sector more generally."

 

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