Urban Logistics has spent £72m over the last month, including buying its first site in central London.
The REIT spent £28m on a 95,000 sq ft last-mile site in Battersea, SW11, let to Lookers Motor Group until July 2041. The deal for the automotive logistics, servicing and sales centre represented a NIY of 4.2%.
The company also bought two properties on Howden Dyke Road in Goole, Yorkshire. It spent £24m on a 288,000 sq ft distribution warehouse let to E-Buyer until October 2036 at a 5.3% yield, and £16m on a 155,000 sq ft distribution warehouse let to Wren Kitchens until October 2036, with a 4.3% NIY.
Finally, the REIT paid £3.7m for a 31,000 sq ft warehouse at the Fairview Industrial Estate in Curdworth, North Warwickshire, at a NIY of 4.3%. The unit is let to Personnel Hygiene Solutions until July 2027.
Chief executive Richard Moffitt said: “It has been a busy few weeks at Urban Logistics, as we continue to deploy the proceeds from our December 2021 fundraising, on assets with significant scope for shareholder value creation.”
In total, Urban Logistics has committed £140m of capital since its £250m fund raise in December, at a blended NIY of 5%.
He added: “We are pleased to acquire our first property in central London, on a long lease at 4.2% NIY and with an excellent tenant in place. We think of this as a very exciting opportunity with significant reversion and suitable for a number of last-mile solutions.”
The REIT said it expects this flow of acquisitions to continue as it settles in to its new spot in the FTSE 250.
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