Urban Logistics, (AIM: SHED) the specialist UK industrial and logistics REIT, is pleased to announce that on 7 November 2018 it exchanged contracts to acquire the freehold of a site located at Hudson Road, Bedford for a total consideration of £17.0 million from 3M Products Limited. The site comprises a building and adjacent development site totaling 20.1 acres. The building represents 183,883 sq ft of warehouse space, which is being acquired with vacant possession.
As part of the Acquisition, the Company is simultaneously selling a plot of development land of 12.1 acres for £5.0 million to a local developer that has plans to build new logistics facilities.
The vendor, who was also the previous occupier, has vacated the site and marketing of the warehouse space has generated strong interest from a range of high-quality local and multinational occupiers that fit the Company’s tenancy criteria.
The Acquisition is consistent with the Company’s investment strategy of identifying well located and attractively priced stock with asset management potential; and sits within an industrial estate that is well known to the Company.
The Acquisition is being financed from the Company’s cash resources, following the recent sale of a site in Leeds, as well as with debt finance from its club facility with Santander and Barclays.
Commenting on the Acquisition, Richard Moffitt, Chief Executive, said:
“The acquisition of this well-located, institutional-grade logistics property offers attractive asset management opportunities for the Company, together with the potential to add newly developed assets in the future.
“This is another example of our approach to creating value whereby the proceeds from successful asset management are reinvested into new opportunities, ensuring the portfolio continues working for shareholders.
“We have had considerable success with investments in Bedford and are confident that this site will prove attractive to a variety of different occupiers.
“Looking ahead, we remain opportunistically acquisitive, focusing on assets that serve the ‘last mile’ needs of a diverse tenant base, especially those responding to the challenges of e-commerce and supply chain constraints.”