Industrial investor Urban Logistics has started investing proceeds from the £250m of equity it raised through a share placing earlier this month.
The REIT has bought £28.6m of assets at an average net initial yield of 5.82%.
The four properties bought comprise: a 27,115 sq ft parcel delivery hub let to Royal Mail on Elland Road in Leicester, for which it paid £3.2m – a 5% yield; a 22,783 sq ft warehouse in Northampton let to Tuffnells Parcel Express until 2031, bought for £5.6m – a 5.7% yield; a 117,031 sq ft Hermes Parcelnet warehouse near Dundee Airport, bought for £6m – a 6% yield; and a 131,500 sq ft warehouse currently in planning in Sheffield. The property, scheduled for completion in November 2022, has been forward purchased and Urban Logistics is targeting a 6% yield on cost.
Chief executive Richard Moffitt said: “We have an excellent pipeline of last-mile/last-touch logistics assets to acquire and the team will be working hard over the coming months, investing in those quality assets that will be accretive to shareholder value, with further acquisitions expected before the end of the year.”
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