Urban Logistics REIT PLC Acquisition (6043Q)

TIDMSHED

RNS Number : 6043Q

Urban Logistics REIT PLC

01 March 2021

Urban Logistics REIT plc

("Urban Logistics" or the "Company")

Acquisition

Urban Logistics, (AIM: SHED) the specialist UK logistics REIT, announces the acquisition of a logistics asset for GBP5.4 million.

Richard Moffitt, Chief Executive, commented:

"In line with our strategic focus on logistics assets which deliver essential goods the "last mile" to customers and businesses , all of our recent acquisitions are single-let properties servicing high quality logistics tenants. Today's acquisition is another well located distribution warehouse near the M5, offering opportunities for asset management activities."

The Acquisition

Droitwich

On 26 February 2021, the Company acquired a well-specified 57,494 sq ft distribution asset for GBP5.4 million at a 4.95% NIY. The site is let to Spire Healthcare with a reversionary lease already agreed for a term of 5 years from 7 April 2021. The rent will be GBP5.46 sq ft and increases the property yield to 5.51%. The site is well located near the M5 and remains a critical part of the tenant's business plan.

M1 Agency Fees

The Company has incurred, on an arm's length basis, a commercial agency fee for the Droitwich acquisition from M1 Agency LLP of GBP53,500. M1 Agency LLP is a partnership in which Richard Moffitt is a designated member. In accordance with Rule 16 of the AIM Rules, fees payable in respect of the acquisition have been aggregated with all fees previously paid to M1 Agency LLP since 16 December 2020, being the date of the Company's last related party disclosure and associated fairness opinion, in respect of M1 Agency LLP. These aggregated fees total GBP494,700 and are therefore considered a related party transaction for the purposes of the AIM Rules.

The independent Directors, having consulted with N+1 Singer Advisory LLP, consider the terms of the related party transaction are fair and reasonable insofar as the Company's shareholders are concerned.

- Ends -

For further information contact:

 
 Urban Logistics REIT plc 
  Richard Moffitt                                [phone] 
 Buchanan                                        [phone] 
  Helen Tarbet                                    [phone] 
  Henry Wilson                                    [phone] 
  George Beale                                    [phone] 
                                                --------------------- 
 N+1 Singer - Nominated Adviser and Broker 
  James Maxwell / James Moat (Corporate 
  Finance) 
  Alan Geeves / James Waterlow / Sam Greatrex 
  (Sales)                                        [phone] 
                                                --------------------- 
 Panmure Gordon (UK) Limited - Joint Broker 
  Chloe Ponsonby (Corporate Broking) 
  Emma Earl (Corporate Finance)                  [phone] 
                                                --------------------- 
 

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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

ACQDKFBQCBKDPBB

(END) Dow Jones Newswires

March 01, 2021 02:00 ET (07:00 GMT)