Urban Logistics refinances and hits acquisition trail

Urban Logistics has refinanced a £151m debt facility and spent the savings on a string of acquisitions. The deal saw the company refinance a £100m term loan and £51m revolving credit facility with a £140m term loan and a £50m RCF from Barclays, ING and Santander, priced at a fixed rate of 4.48% until August 2025 and 4.98% until maturity in 2027. The net proceeds of the refinancing have been spent on four assets in Wolverhampton, Doncaster, Peterlee and Dartford for a total of £42.2m at a blended net initial yield of 6.6%. Richard Moffitt, chief executive of the REIT’s investment adviser, said: “At our full-year results announcement in June, we flagged an arbitrage emerging between debt rates and asset pricing in our pipeline of opportunities. We have been able to deploy additional capital into the acquisition of carefully selected buildings at very attractive initial yields. The properties also provide the potential for active asset management opportunities to drive additional income and capital returns for our shareholders.”