Urban Logistics REIT has bought three logistics properties for a combined £22.9m, including a distribution facility let to Amazon.
The 71,160 sq ft, Amazon-let distribution unit in Fareham, Hampshire, was bought for £10.9m from M&G at a 6% net initial yield. It is leased to the online retail giant for five years at £9.80 per sq ft.
Urban Logistics has also bought a 129,222 sq ft warehouse in Huntingdon, Cambridgeshire, from Dart Products for £2.1m, and is spending a further £4.6m on a complete refurbishment of the warehouse.
After refurbishment, which is due to complete in May next year, the property will be let to an unnamed multinational delivery services company on a 15-year lease. The rent will be £5.38 per sq, with a five-yearly rent review linked to CPI, collared and capped at 2% and 5% per annum.
Additionally, the logistics landlord has bought a 49,433 sq ft distribution unit in Northampton for £5.2m at a 5.8% net initial yield.
The site is leased to Trans Global for a term of 10 years through to 2030. The rent is £6.57 per sq ft with an open-market rent review in 2025.
Richard Moffitt, chief executive, said: “These logistics assets are well located in the Midlands and South East for delivering essential goods the ‘last mile’ to customers and businesses.
“In line with our strategic focus, all of these assets are single-let properties servicing high-quality tenants and provide excellent opportunities for value enhancement through active asset management.”
Agency fees on the three deals,from M1 Agency, totalled £142,720.
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