UK logistics REIT Urban Logistics has purchased six logistics assets for a total consideration of £27.8 million, reflecting a 6.9% net initial yield (NIY).
On 17 February 2021, Urban Logistics acquired a portfolio of four logistics assets from Kinaxia Logistics for £17.3 million at a 6.24% NIY. This sale and leaseback transaction includes sites in Macclesfield, Telford, Royal Wootton Bassett and Yate. Totalling 167,350 sq ft of warehousing, the average rent is £5.24 per sq ft.
The tenant provides haulage and logistics services to clients across the UK. The new leases are for 15-year terms with a tenant break option after 10 years. There are five yearly rent reviews to the higher of RPI (2 – 4% cap and collar) and open market value.
On 12 February 2021, the company acquired a 80,209 sq ft distribution unit for £6.7 million at a 6.25% NIY. This is a sale and leaseback transaction with XPO and the site is let for a term of five years. The rent is £5.50 per sq ft. The site is close to the A580 / M6 in a location well known to the Manager.
On 10 February 20221, the Company acquired a well-specified 124,966 sq ft distribution unit for £3.8 million from Goodman at a 10.8% NIY. The site is let to Green Forest Solutions for a term of 5 years through to 2025. The rent is £3.50 per sq ft. The site is located close to the M18, M1 and A1(M).
“We are delighted with these new logistics assets which are perfectly positioned to deliver essential goods the “last mile” to customers and businesses in key conurbations. In line with our strategic focus, all of these assets are single-let properties servicing high quality logistics tenants,” said Richard Moffitt, Chief Executive.