Urban Logistics has bought Columbia Threadneedle’s Street portfolio for £39.5m.
The deal for the portfolio, which comprises more than 400,000 sq ft of industrial space, equates to a net initial yield of 6.1%.
It covers a 95,352 sq ft unit in Redditch, Worcestershire, let to Carpet and Flooring on a lease expiring in 2027; a 112,586 sq ft unit in Droitwich, Worcestershire, let to Amazon UK Services on a lease expiring in 2026; a 113,071 sq ft unit in Southampton, let to Delamode Logistics on a lease expiring in 2024; and an 81,699 sq ft unit in Rugby, Warwickshire, let to Volvo Group on a lease expiring in 2026.
In a separate deal, the last-mile logistics REIT also bought a 63,488 sq ft warehouse in Thatcham, Berkshire, for £8.7m, at a NIY of 5.8%. It is let to Offsite Storage and Integrated Services on a lease expiring in 2029.
Urban Logistics has also reached practical completion on five units of its forward-funded developments, adding 239,235 sq ft to the portfolio. Three of the five units are under offer, one is prelet and marketing is ongoing for the final unit.
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.”
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