Last mile logistics-focused REIT Urban Logistics has launched a share offer to raise £200m for acquisitions.
The share offer, which will be priced at 170p per share – a 4.23% discount to its closing price on 12 November – is intended to be used to help finance some £400m of identified acquisition opportunities, said the REIT.
Urban Logistics said that having fully deployed or committed £134m of capital following its July fundraising of £108m, it had identified a further pipeline of “high quality, last mile logistics assets, strategically located in targeted logistics hubs”.
The assets identified have a weighted average unexpired lease term of around 8.4 years, a weighted average net initial yield of approximately 5.4%, and an average rent of £6.02 per sq ft.
The firm said it expected to have deployed funds raised within six months.
Non-executive chairman Nigel Rich said: “Urban Logistics has undergone transformative growth in recent years, with the significant growth in the value of our portfolio matched by its proven resilience and robustness. The strong forward momentum in our real estate sector continues, with demand from tenants outstripping supply of suitable properties. The pipeline identified by the manager is of high quality and offers significant value growth opportunity.”
Chief executive Richard Moffitt added: “Last mile or last touch logistics properties are an increasingly important part of the supply chain and we have put ourselves in a market leading position. We have sourced a highly attractive pipeline of strategically located properties which fit our investment focus and will enhance our overall portfolio.
“The UK urban logistics and distribution markets have undergone a permanent paradigm shift since the Covid-19 pandemic began, with supply chain security and a ‘just in case’ approach replacing the ‘just in time’ philosophy of previous years.
“Our portfolio and the pipeline we have sourced offer exactly what tenants are seeking in terms of location, size and quality. We are confident that this pipeline will offer compelling opportunities for value enhancement.”
As of 30 September, Urban Logistics had a portfolio totalling £660.5m of assets.
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