Urban Logistics snaps up £90m of last-mile sheds
Urban Logistics has added another £90m of kit to its portfolio.
The last-mile logistics-focused REIT has completed five deals at a blended net initial yield of 4.5%, adding there was “significant potential” to add value through active asset management.
The deals include a 97,000 sq ft warehouse in Southall, west London, bought for £46m at a NIY of 1.9%. However, as there are just two months remaining on the lease, Urban Logistics said it sees an opportunity to raise the rent from its current £10 per sq ft to circa £25 per sq ft – the local market average.
Urban Logistics has added another £90m of kit to its portfolio.
The last-mile logistics-focused REIT has completed five deals at a blended net initial yield of 4.5%, adding there was “significant potential” to add value through active asset management.
The deals include a 97,000 sq ft warehouse in Southall, west London, bought for £46m at a NIY of 1.9%. However, as there are just two months remaining on the lease, Urban Logistics said it sees an opportunity to raise the rent from its current £10 per sq ft to circa £25 per sq ft – the local market average.
A 250,000 sq ft DHL warehouse in Bardon, two miles from the M1, was bought for £35m at a NIY of 4.7%, while a trio of 30,000 sq ft units in Sheffield, Dundee and Barnsley completed the deals.
Chief executive Richard Moffitt said: “During recent market volatility we have been deliberately patient in our deployment, and that patience has been rewarded by our ability to acquire these properties in prime locations on advantageous terms.”
He added that active asset management would quickly improve the valuations.
“We firmly believe that, at any stage in the property cycle, if we improve lease lengths we will see yield compression,” he said.
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