Urban Logistics REIT has acquired five high-quality logistics assets for a total consideration of €36.7m (£33.1m) at a blended 6.4% NIY in Ripon, Braintree, Oxford, Exeter and Warrington. These urban logistics sites support a diverse customer base.
The asset in Ripon comprises a 43,881ft² distribution unit and has been purchased for €3.2m (£2.9m) from Xpediator plc at a 6.25% NIY. Nidd Transport has taken a 15-year lease as part of a sale and leaseback arrangement. The rent is circa €5 (£4.56) per ft² and there is a five-yearly rent review linked to RPI with a cap and collar (2% – 4%). The unit is located on the Barker Business Park which is a well-established location adjacent to the A1(M).
The property in Braintree is a modern distribution warehouse, which is subdivided into two units, for €12.4m (£11.2m) at a 5.25% NIY. The units are let to Delamode Group. The two storey warehouse is let at €8.86 (£7.99) per ft² through to 2025 and there is a rent review due in December 2020. The site is prominently located close to the A120.
The company has also acquired a high quality, automated 71,384ft² distribution warehouse in Oxford. The asset was purchased for circa €10m (£9.1m) at a 6.6% NIY. The unit is let to Ceva Logistics who distribute sports apparel from this site for a leading global brand. The site serves as a national distribution hub and is prominently located close to the A40.
The unit in Exeter which is let to Giant Booker was acquired for €5.6m (£5.1m) at a 8.0% NIY. It is located close to the M5 and is let until February 2030. The Company has also purchased a warehouse in Warrington which is let to CDS (Superstores International) Limited, who trade as The Range, for €5.3m (£4.8m) at a 7.4% NIY. The site is located close to the M62.
Richard Moffitt, Chief Executive, commented: “These acquisitions were sourced off-market and are in line with our strategy of focusing on well-located logistics properties that supply essential products and consumer goods. Following the successful completion of our recent fundraising, we will now work to conclude the acquisition of further logistics properties from our established pipeline, enabling the rapid deployment of new funds into high-quality income-generating assets. With greater scale, we are confident that we can continue to deliver attractive shareholder returns.”
