Urban Logistics REIT has acquired £56.1m of logistics properties and a development site, using capital from a £136.1m equity raise that it completed in March.
Its acquisitions include a portfolio of seven single-let regional distribution warehouses that it bought yesterday from Paloma Capital for a £31.9m, representing a net initial yield of 6.8%. This covers 482,012 sq ft of warehousing.
Completion of one property, located in Glasgow, has been delayed as a result of Scotland’s Land Registry being closed during the coronavirus lockdown.
The company also bought an NHS logistics facility in West Yorkshire from Orchard Street Investment Management for £12.9m. The price for the 152,348 sq ft property, operated by Unipart in Normanton, reflected a 5.24% net inital yield.
Urban Logistics said it “continues to evaluate acquisitions across business-to-business parcel depots and last-mile warehouses”.
A further portfolio acquisition is in the final stages of negotiation and is expected to complete later this month.
The REIT has collected 93% of rent due for the quarter to June 2020 as at today, compared to 91% at the same time last year.
Of the 38 properties in its overall portfolio, four are not fully operational as a result of Covid-19. It is currently discussing a revised payment plan with one of the tenants.
Chief executive Richard Moffitt said: “The crisis has highlighted the importance of warehousing and distribution real estate, especially scarce regional and last-mile properties focused on essential goods and consumer staples.
“Our strong balance sheet, conservative debt and robust rent roll performance enables the business to manage the impact of Covid-19. We will continue to proceed cautiously and review further acquisition opportunities and report on these when appropriate.”
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