Urban Logistics has spent £88m of its recently raised £109m warchest on six off-market deals.
The deals, a mix of income-producing assets and forward funding commitments, add a further 771,750 sq ft of shed space at a net initial yield of 5.4%, taking the portfolio to 6m sq ft.
Urban Logistics boss Richard Moffitt said: “In line with our investment strategy, these properties are strategically positioned in areas with excellent transport links, strong demand for stock and limited supply.”
Over the same period the company let over 700,000 sq ft in 11 deals.
Moffitt said the company was well-placed to take advantage of the “the UK’s fundamental mismatch between the demand for last-mile logistics assets and their availability”.
The income-producing assets comprise:
- 43,958 sq ft in Farnham, bought for £8.5m, at a NIY of 4.5%;
- a 25,990 sq ft unit near Ipswich for £2.7m, at a NIY of 5.5%;
- 50,672 sq ft at Wellingborough for £3.6m, at a NIY of 5.2%;
- a 128,460 sq ft property in Rugby;
- and a 124,134 sq ft property in Huntingdon for a combined price of £27.6m, and a NIY of 4.5%.
A total of £22m was spent forward funding nearly 200,000 sq ft in Rochdale, Castle Donnington and Exeter.
The firm also spent £15m before this equity raise, adding 157,500 sq ft in three transactions.
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