Urban Logistics buys three assets for £22.9m

Urban Logistics buys three assets for £22.9m

UK logistics REIT Urban Logistics has acquired three logistics assets for a combined £22.9 million in Huntingdon, Northampton and Fareham, including an Amazon UK leased distribution unit.

On 2 December 2020, the Company acquired a 129,222 sq ft warehouse in Huntingdon from Dart Products Limited for £2.1 million and is spending a further £4.6 million on a complete refurbishment of the warehouse, due to complete in May 2021. Once the refurbishment is complete, the property will be let to a multinational delivery services company on a 15-year lease. The rent will be £5.38 per sq ft and there is a five-yearly rent review linked to CPI with a cap and collar (2% – 5%). The property is located on the St Peters Road Industrial Estate with access to the A14 and A1/M.

On 10 December 2020, the Company acquired a recently refurbished 49,433 sq ft distribution unit in Northampton for £5.2 million at a 5.8% NIY. The site is let to Trans Global for a term of 10 years through to 2030. The rent is £6.57 per sq ft and there is an open market rent review in 2025. The site is well located close to the M1.

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On 15 December 2020, the Company acquired a well-specified institutional quality 71,160 sq ft distribution unit in Fareham for £10.9 million from M&G at a 6.0% NIY. The site is let to Amazon UK for a term of 5 years through to 2025. The rent is £9.80 per sq ft. The site is located near the M27 in an established commercial centre between Portsmouth and Southampton, one of the most constrained parts of the UK logistics market.

Richard Moffitt, Chief Executive, commented:

“These logistics assets are well located in the Midlands and South East for delivering essential goods the “last mile” to customers and businesses.

“In line with our strategic focus, all of these assets are single-let properties servicing high quality tenants and provide excellent opportunities for value enhancement through active asset management.

“The site in Huntingdon is currently undergoing refurbishment and we have secured a leading multinational delivery services company as a tenant on a 15-year lease once work is completed in May 2021. The Northampton site is a recently refurbished logistics unit well located near the M1, let to Trans Global, and the site in Fareham is let to Amazon and is in a prime local location offering reversionary potential.”