Hargreaves Lansdown

Urban Logistics agrees £30m sale of five assets

Fri 26 March 2021 08:18 | A A A

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(Sharecast News) - Urban Logistics has exchanged contracts to sell five assets as part of a portfolio, it announced on Friday, for £30m at a 4.8% exit yield, realising a total property return of 78.8%.

The AIM-traded real estate investment trust said the sale was in line with its strategy of active portfolio management and value optimisation where appropriate.

Completion was expected on 21 April.

The average purchase price was at a net initial yield of 7%, and the company said it had undertaken "extensive" asset management with new rents and lease terms agreed across all sites.

It said the sale represented a 35.4% uplift on 30 September book values, with the proceeds to be reinvested into other pipeline opportunities.

The five assets are located in Bedford, Leicester, Chesterfield, and two warehouses in Nottingham, and were sold to a joint venture of the Carlyle Group and ARA Dunedin.

They were let with an average weighted average unexpired lease term of 7.4 years.

"I am extremely pleased with this sale which has realised a strong return for shareholders," said chief executive officer Richard Moffitt.

"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."

At 0811 GMT, shares in Urbal Logistics REIT were up 1.33% at 148.95p.

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