- What Urban Logistics is to raise £100m through a placing
- Why It has a target pipeline of £300m
- What next The placing is due to close on 14 February
Urban Logistics REIT is to raise £100m through a placing in order to bolster its portfolio.
The company has identified a pipeline of £300m, of which it is in advanced negotiations for £146m. The advanced portfolio total three portfolios and 12 single assets with a weighted average unexpired lease term of 7.8 years and a weighted average net initial yield of 6.8%.
Shares will be issued at 137.5p per share, a 7.7% discount on the mid-market price on 7 February. It is expected to close at 1pm on 14 February.
The company, which was launched in 2016, currently has a portfolio valued at £190.8m, having acquired the assets for £158.9m. It is externally managed by Pacific Capital Partners, which is headed by chief executive Richard Moffitt.
Moffitt said: “Mid-box logistics assets at the end of evolving logistics chains are in short supply and offer excellent opportunities for investors seeking exposure to this high-growth sub-sector of the real estate market. We are in advanced negotiations on just under half of our £300mmillion pipeline, enabling the rapid deployment of funds raised pursuant to the Issue into accretive high-quality income-generating assets. With greater scale, we are confident that we can continue to grow the company and deliver attractive shareholder returns.”
N+1 Singer and Panmure Gordon are placing agents for the company.