LONDON (ShareCast) - (Sharecast News) - Urban Logistics completed the second of two portfolio acquisitions totalling £36m from LondonMetric on Friday, it confirmed on Monday morning.
The AIM-traded firm said that, as it had previously announced, its recent acquisition comprised two portfolios.

It had now completed the acquisition of the second portfolio at an aggregate acquisition price of £16.5m, representing a net initial yield of 5.8%.

The company said the gross consideration including costs for that portfolio was £17.9m.

It comprised three "well located" assets - the first being a 45,243 square foot warehouse in Northampton, let to Encon on an annual rent of £225,000 until August 2023, with a rent review due in September.

The second was in Nottingham, and consisted of a 113,717 square foot warehouse let to Hillary's Blinds on an annual rent of £568,310 until July 2027, also including 2.2 acre land site to the north of the warehouse.

Sheffield was the location of the third asset - a 54,556 square foot warehouse let to Cogne UK on an annual rent of £230,000 until September 2026, with a rent review due in September 2021.

As it had previously announced, Urban Logistics said the the gross consideration for both the first and second portfolios was £38.7m, including purchaser costs of £2.4m which were primarily SDLT and finance costs of £0.3m, representing a blended net initial yield of 5.9%.

The company said it was now fully invested following its April capital raise.

Both portfolios together had an average capital value of £72 per square foot - substantially below the cost of replacement, with low average rents of £4.57 per square foot and a weighted average unexpired lease term of 5.5 years.

"Having fully deployed the investment capital raised in April in another off-market acquisition, we are focused on developing the value of our assets and sourcing new acquisition opportunities to grow the business," said chief executive Richard Moffitt.

"Structural demand for well-located urban logistics assets serving the needs of UK businesses remains strong."

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