Urban Logistics has acquired a portfolio of seven distribution sites from Legal & General Investment Management for £47.2m.
The Crown portfolio comprises properties on Aberdeen, Huntingdon, Blackpool, Ipswich, Newmarket, Plymouth and Rotherham with an average warehouse size of 84,105 sq ft.
The acquisition had a 7% net initial yield, with average passing rents at £4.96 sq ft and a capital value of £68 per sq ft.
It took place off-market through the purchase of a Jersey unit trust from funds controlled by L&G.
Tenants include Giant Booker, Anglian Water, Herme Parcelnet and Pegler. The portfolio has a WAULT of eight years.
Chief executive Richard Moffitt said: “These properties are well located, close to labour availability and population centres, have strong tenant covenants and offer a range of asset management opportunities.
The acquisition was fully funded by proceeds from the March £136.1m equity raise. Moffitt said Urban Logistics has now deployed £103m of that capital and will continue to look opportunistically at properties to complement the portfolio.
He added: “Our tenants continue to trade well and all of our rents have now been collected. We remain convinced of the attractive opportunities ahead across the company’s portfolio and the mid-sized logistics warehousing sector more generally.”
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