Urban Logistics acquires five new assets

Real estate investment trust Urban Logistics has acquired five new assets for a combined total consideration of £48.0m at a net initial yield of 6.0%.

Urban Logistics said on Monday that it had purchased a 95,352 square foot unit in Worcestershire, a 112,586 square foot unit in Droitwich, a 113,071 square foot unit in Southampton, an 81,699 square foot unit in Rugby, and a 63,488 square foot warehouse near junction 12 of the M4.

The FTSE 250-listed group added that it had also completed two new lettings, generating additional rental income of £200,000, and two lease restructurings, while also reaching practical completion on five units of its forward-funded developments.

Chief executive Richard Moffitt said: "In the period since 30 September 2022, we have selectively deployed capital into assets which provide immediate income at a very attractive yield and provide the potential for value enhancing mid-term asset management opportunities. We have also been able to achieve significant rental uplifts on new lettings, demonstrating the quality of our existing portfolio and proving our asset management strategy.

"In addition, we have completed five developments in this period on time and on budget providing a very attractive yield on cost and demonstrating an additional route through which we can deliver returns for shareholders. We're also pleased to see MSCI recognise our commitment to ESG with a significant upgrade to our rating from CCC to A, which follows our recent upgrades from GRESB and EPRA's sBPR awards, and we look forward to building on this success."

As of 0900 GMT, Urban Logistics shares were down 1.07% at 138.50p.

Reporting by Iain Gilbert at Sharecast.com