Urban Logistics in advanced negotiations on GBP146m of new acquisitions
Urban Logistics is in advanced negotiations to acquire three portfolios of logistics assets and 12 single sheds for a total of GBP146 million.
The assets are expected to have a weighted average unexpired lease term of approximately 7.8 years and a weighted average net initial yield of approximately 6.8 per cent. Urban Logistics warehouses are the sector’s best performing assets, offering a compelling combination of income and capital appreciation. At the time of writing the Company shares trade at a small premium to NAV.
The Company is in the final stages of due diligence on the assets and no contractually binding obligations have been entered into. It is considering an equity fundraising alongside debt to finance its pipeline activities and will make further announcements as appropriate.
The Manager believes that the acquisition of the properties will be accretive to shareholder returns and will further diversify the Company’s income, in addition to continuing to strengthen the portfolio’s quality, size and prospects for further growth. The pipeline assets referred to are subject to ongoing negotiation and due diligence by the Manager and no contractually binding obligations have been entered into for their sale and purchase.
Whilst there can be no assurance that the Company will complete the acquisition of any of the pipeline properties on the expected terms or at all, the Manager believes that the net proceeds of a potential fundraise would be substantially invested within a three-month period following completion.