Urban Logistics, the UK logistics REIT, has acquired off-market a logistics site in Bromborough, Wirral for £16.3 million at a net initial yield (NIY) of 5.0%.
The 169,963 sq ft property was constructed in 2011/12 to an institutional specification with a 19 metre eaves height and a BREEAM Excellent standard. The site is let to Great Bear Distribution, part of the Culina Group, which operates a Nestle Cereal contract. The manufacturing plant is conveniently located adjacent to the property.
Included with the purchase is an acre of land to accommodate any future extensions to the building and yard, said Urban Logistics in a statement. ”The lease, with a passing rent of £4.97 per sq ft, runs to January 2022 after which a reversionary lease, with a cap and collar rent of £5.15 to £5.50 per sq ft, has been agreed through to January 2032. There is an open market rent review then due in 2027. The site is located on the Wirral International Business Park, 1 mile from the M53, making it well-suited to the ‘last touch logistics’ profile which is characteristic of Urban Logistics’ portfolio.”
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The company also said it had received 99% of rent due for the quarter to March.
“This is another high quality off-market acquisition that formed part of our pipeline. 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,” said Richard Moffitt, Chief Executive.
“Despite the lockdown restrictions that are once again in place, I’m pleased to report that all of our tenants are 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,” he added.