LONDON: Urban Logistics REIT has acquired seven properties (Crown Portfolio) for a total consideration of £47.2 million.

The Crown Portfolio comprises seven properties which are being acquired for a consideration of £47.2 million, equivalent to a 7.0% NIY. The acquisition took place off market through the purchase of a Jersey unit trust from funds controlled by Legal & General Investment Management.

The Crown Portfolio’s tenants include Giant Booker (three sites), Anglian Water, Hermes Parcelnet and Pegler plc. Included within the portfolio is a site in Aberdeen which is multi-let and subject to a 12-month rental guarantee on its two vacant units. With a weighted average unexpired lease term of eight years the portfolio offers asset management opportunities as well as secure income from high-quality tenants.

Giant Booker, the food wholesaler owned by Tesco plc, represents 31% of the portfolio’s rental income.

Richard Moffitt, Chief Executive, commented: “We are delighted to have continued strengthening the Company’s portfolio, investing a further £47 million into regional warehouses which support the distribution of staple goods across the UK.

“These properties are well located, close to labour availability and population centres, have strong tenant covenants and offer a range of asset management opportunities.

“We have now deployed £103 million of the £136 million raised in March and will continue to adopt a patient and cautious approach as we build the portfolio. Our strong balance sheet enables us to look opportunistically at properties which offer attractive returns and complement our existing portfolio.

“Our tenants continue to trade well and all of our rents have now been collected. We remain convinced of the attractive opportunities ahead across the Company’s portfolio and the mid-sized logistics warehousing sector more generally.”

Urban Logistics REIT plc is a property investment company. The Company has been established to invest in UK-based logistics properties with the objective of generating attractive dividends and capital returns for its shareholders. Its investment strategy focuses on strategically located smaller single let properties servicing high-quality tenants. Investment returns will be generated by an experienced management team focusing on quality stock selection and active asset management.