Urban Logistics REIT - Acquisitions and Covid-19 update
("Urban Logistics" or the "Company")
Acquisitions and Covid-19 update
Urban Logistics, (AIM: SHED) the specialist
§ a portfolio of seven single-let regional distribution warehouses for
§ a regional distribution centre in Rubery for
§ conditional agreement for the forward funding of a high-quality logistics property on a 3-acre site in
§ Acquisitions are funded from the proceeds of March's
§ Further portfolio in the final stages of acquisition, expected to complete in April
§ 93% of rents for the quarter to
§ Robust balance sheet:
§ As at the date of this announcement,
§ Current debt facility matures in
§ Significant covenant headroom
§ Advanced discussions regarding increased banking facilities
"Covid-19 has posed challenges for business and society as governments seek to manage the contagion and its long-term impact. Throughout this crisis our priority has been ensuring that the Company operates safely and in line with the government's evolving guidance.
"The crisis has highlighted the importance of warehousing and distribution real estate, especially scarce regional and last mile properties focused on essential goods and consumer staples.
"Our strong balance sheet, conservative debt and robust rent roll performance enables the business to manage the impact of Covid-19. We will continue to proceed cautiously and review further acquisition opportunities and report on these when appropriate."
On 7 April, the Company acquired a portfolio of seven single-let regional distribution warehouses, (the "Portfolio") from
The Portfolio, which was sourced off-market and acquired freehold, comprises 482,012 sq ft of warehousing with a low capital value of
The sites are all in close proximity to established regional transport networks, have good labour availability and are located in well-populated areas where there is strong occupier demand.
Single asset acquisitions
The Company has also completed the following acquisitions:
§ Normanton - a 153,473 sq ft property acquired for
§ Rubery - a 51,600 sq ft property acquired for
As part of some of these acquisitions, fees of
Looking ahead, the Company continues to evaluate acquisitions across business-to-business parcel depots and last mile warehouses. A further portfolio acquisition is in the final stages of negotiation and is anticipated to complete in April.
A key element of the Company's acquisition strategy has been to focus on tenants' businesses with a notable bias towards food and pharmaceuticals, consumer staples and other essential goods.
This strategy has endowed the Company's portfolio with resilience, as evidenced by 93% of rents for the quarter to
Of the 38 properties in the Company's portfolio, only four are not fully operational as a result of Covid-19 and the Manager is currently discussing a revised payment plan with one of these tenants.
As at today's date, after taking the acquisitions into account, the Company is in a strong net cash position with available resources of
While existing debt facilities are not due to mature until
Looking forward, it is too early to assess the full impact of Covid-19 on the wider economy or the real estate market as a whole. Nonetheless, the Board continues to believe that logistics assets remain relatively well positioned in terms of value and occupier demand with prices remaining resilient.
The Company will provide further updates as appropriate and intends to announce its Preliminary results for the year ended
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION (EU) NO 596/2014 ("MAR").
- Ends -
For further information contact:
+44 (0)20 7591 1600
Montfort - Financial PR and IR adviser
+44 (0)78 1234 5205
N+1 Singer - Nominated Adviser and Broker
+44 (0)20 7496 3000
+44 (0)20 7886 2500
About Urban Logistics REIT
The Company has been established to invest in
A number of structural and commercial factors currently support the attractive opportunity in the last mile/regional industrial and logistics real estate sub-sectors targeted by the Company, including: strong occupier demand, (driven by the growth of e-commerce and investment by retailers in their associated supply chain) and a decline in the supply of smaller sized lettable space in industrial and logistics real estate across the
This information is provided by RNS, the news service of the
Quick facts: Urban Logistics Reit PLC
Market Cap: £264.06 m
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