Urban Logistics makes five new acquisitions

Urban Logistics has acquired five logistics assets for a combined GBP33.1 million in Ripon, Braintree, Oxford, Exeter and Warrington. 

Richard Moffitt, Chief Executive, says: “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.”
 
On 5 October 2020, the Company acquired a well-specified 43,881 sq ft distribution unit in Ripon for GBP2.9 million from Xpediator plc at a 6.25 per cent NIY. Nidd Transport, a third-party logistics operator recently acquired by Xpediator plc, has taken a 15-year lease as part of a sale and leaseback arrangement. The rent is GBP4.56 per sq ft and there is a five-yearly rent review linked to RPI with a cap and collar (2 per cent - 4 per cent). The unit is located on the Barker Business Park which is a well-established location adjacent to the A1(M).
 
On 30 October 2020, the Company acquired a modern distribution warehouse in Braintree, which is subdivided into two units, for GBP11.2 million at a 5.25 per cent NIY. The units are let to Delamode Group, also part of Xpediator plc, who are a freight and logistics provider. The two storey warehouse is let at GBP7.99 per sq ft through to 2025 and there is a rent review due in December 2020. The site is prominently located close to the A120.
 
On 4 November 2020, the Company acquired a high quality, automated 71,384 sq ft distribution warehouse in Oxford for GBP9.1 million at a 6.6 per cent NIY. The unit is let to Ceva Logistics who distribute sports apparel from this site for a leading global brand. The site is let at GBP8.41 per sq ft through to 2025 and there is an outstanding RPI-linked rent review. The site serves as a national distribution hub and is prominently located close to the A40.
 
On 6 November 2020, the Company acquired a unit in Exeter which is let to Giant Booker for GBP5.1 million at a 8.0 per cent NIY. It is located close to the M5 and is let until February 2030. The rent is GBP4.87 per sq ft and there is a rent review in 2025 to the higher of open market or 2.5 per cent compound per annum.
 
On 6 November 2020, the Company acquired a warehouse in Warrington which is let to CDS (Superstores International) Limited, who trade as The Range, for GBP4.8 million at a 7.4 per cent NIY. The site is let until December 2032 and the rent is GBP4.43 per sq ft. The rent increases at 2 per cent compound per annum. The site is located close to the M62.