LONDON (ShareCast) - (Sharecast News) - Urban Logistics has acquired a logistics site in Bromborough, Wirral off-market for £16.3m at a 5.0% net initial yield, it announced on Friday, as part of the deployment of capital from its recent fundraising.
The AIM-traded real estate investment trust said the 169,963 square foot property was built in 2011-2012 to an institutional specification, with a 19 metre eaves height and a BREEAM 'Excellent' standard.

It said the site was let to Great Bear Distribution, part of the Culina Group, which operates a Nestle cereal contract.

The manufacturing plant was located adjacent to the property, and included with the purchase was an acre of land to accommodate any future extensions to the building and yard.

Urban Logistics said the lease, with a passing rent of £4.97 per square foot, ran to January 2022, after which a reversionary lease with a cap and collar rent of £5.15 to £5.50 per square foot had been agreed through to January 2032.

There was an open market rent review then due in 2027.

The site is located on the Wirral International Business Park, one mile from the M53, which the board said made it "well-suited" to the "last touch logistics" profile.

Looking at its rent collection, Urban Logistics also said that it had received 99% of rent due for the quarter to March.

The remaining 1% was expected to be collected "imminently", with all of the company's tenants remaining fully operational.

"This is another high quality off-market acquisition that formed part of our pipeline," said chief executive officer Richard Moffitt.

"This site with its reversionary lease is well-located and offers an excellent opportunity for value enhancement over the long term through active asset management."

Moffitt said that, despite the lockdown restrictions once again in place, all of Urban Logistics' tenants were operational.

"Our strong levels of rent collection are evidence of our proactive approach to strong covenants and our preference for tenants involved in the supply of essential products and consumer goods."

At 0848 GMT, shares in Urban Logistics were up 0.68% at 142.96p.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE