Urban Logistics, (AIM: SHED) the specialist UK industrial and logistics REIT, is pleased to announce that it has sold a site located on Postley Road, Bedford for £9.2 million realising a Total Property Return* of 74%.
The 85,012 sq ft site was purchased at the time of the Company’s IPO in April 2016 for £5.5 million and comprises four industrial units together with a piece of development land. The development land, which the purchaser has an option to acquire if planning permission is granted (for £0.5 million), is not included in the disposal and will be retained by the Company.
The units, which have been sold to Apperly Estates Limited, are fully let with an average WAULT of 5.9 years. They have undergone extensive asset management, with new rents agreed at £6.52 per sq ft on Unit A and £6.26 per sq ft on Unit B.
Commenting on the disposal, Richard Moffitt, Chief Executive, said:
“I am extremely pleased with this disposal which has realised a very strong return for shareholders three years on from purchase.
“Since our IPO we have achieved considerable success creating then realising value across our portfolio once available asset management initiatives have been completed.
“Looking ahead, we remain selectively acquisitive and have an extensive pipeline of opportunities, focusing on properties that serve the ‘last mile’ needs of a diverse tenant base, especially those responding to the challenges of e-commerce and supply chain constraints.”
*Total Property Return (TPR) is capital growth plus net rental income plus sale profit expressed as a percentage of the purchase price. The Company will adopt this metric going forward when reporting on disposals