Urban Logistics REIT is looking to raise more than £100m to pump into acquiring an “attractive pipeline” of logistics assets.
The company will open a new share issue to investors following a meeting next month.
The REIT will use the funds to buy three portfolios and 12 single assets, which it is in preliminary stage discussions to acquire. The acquisitions are expected to have a weighted average net initial yield of 6.8%.
Urban Logistics is also in preliminary discussions on acquiring further properties that total more than £150m.
The issue price for the new ordinary shares is 137.5p, marking a discount of 7.7% to the closing mid-market price on 7 February.
Richard Moffitt, director and chief executive, said: “Mid-box logistics assets at the end of evolving logistics chains are in short supply and offer excellent opportunities for investors seeking exposure to this high-growth sub-sector of the real estate market.
“We are in advanced negotiations on just under half of our £300m pipeline, enabling the rapid deployment of funds raised pursuant to the issue into accretive high-quality income-generating assets. With greater scale, we are confident that we can continue to grow the company and deliver attractive shareholder returns.”
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