LONDON: Urban Logistics has exchanged contracts to sell five assets as part of a portfolio for £30.0 million at a 4.8% exit yield, realising a total property return of 78.8%.
The sale is in line with Urban Logistics’ stated strategy of active portfolio management and value optimisation where appropriate. Completion is expected to take place on 21 April 2021. The average purchase price was 7.0% NIY and the Company has undertaken extensive asset management with new rents and lease terms agreed across all sites. The sale represents a 35.4% uplift on 30 September 2020 book values. The proceeds will be reinvested into other pipeline opportunities.
The five assets are located in Bedford, Northampton (two warehouses), Leicester and Chesterfield and have been sold to a joint venture between The Carlyle Group and ARA Dunedin. They are let with an average WAULT of 7.4 years.
Richard Moffitt, Chief Executive, commented: “I am extremely pleased with this sale which has realised a strong return for shareholders.
“Since we started out on our journey in 2016, we have achieved considerable success creating, then realising value across our portfolio once available asset management initiatives have been completed. This deal is the latest example of our proven track record of value creation.
“The funds realised from these sales will be quickly redeployed in acquiring further assets from our pipeline.”
Urban Logistics REIT plc is a property investment company, quoted on the AIM market of the London Stock Exchange, (AIM: SHED).