Hargreaves Lansdown

Urban Logistics acquires Droitwich asset for £5.4m.

Mon 01 March 2021 11:25 | A A A

No recommendation

No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.

(Sharecast News) - Specialist UK logistics investor Urban Logistics announced the acquisition of an asset in Droitwich Spa, Worcestershire, for £5.4m on Monday.

The AIM-traded real estate investment trust described the asset as a "well-specified" 57,494 square foot distribution asset, with the acquisition carrying a net initial yield of 4.95%.

It said the site was let to Spire Healthcare with a reversionary lease already agreed for five years from 7 April.

The rent would be £5.46 per square foot, increasing the property yield to 5.51%.

Urban Logistics said the site was well-located near the M5 motorway, and remained a "critical part" of the tenant's business plan.

"In line with our strategic focus on logistics assets which deliver essential goods the 'last mile' to customers and businesses, all of our recent acquisitions are single-let properties servicing high quality logistics tenants," said chief executive officer Richard Moffitt.

"Today's acquisition is another well located distribution warehouse near the M5, offering opportunities for asset management activities."

At 1102 GMT, shares in Urban Logistics were down 0.03% at 146.95p.

    The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.


    More AIM news from ShareCast

    No results were found