Urban Logistics has bought a 169,963 sq ft logistics site in Wirral, Merseyside, for £16.3m, in an off-market deal.
The REIT bought the property from Orchard Street Investment Management on behalf of St James’s Place Wealth Management, with the deal reflecting a 5% net initial yield.
The property is located in Bromborough and let to Great Bear Distribution, part of the Culina Group, which operates a Nestlé cereal contract.
The lease has a passing rent of £4.97 per sq ft, running to January 2022. After this point a reversionary lease, with a cap and collar rent of £5.15 to £5.50 per sq ft, has been agreed until January 2032. An open market rent review is due in 2027.
The deal also includes an acre of land for any future extensions to the building and yard.
Richard Moffitt, chief executive of Urban Logistics, said: “This site with its reversionary lease is well located and offers an excellent opportunity for value enhancement over the long term through active asset management.”
The news comes as the REIT collects 99% of rent due for the quarter to March, with the remaining 1% “expected to be collected imminently”.
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