UK REIT Pacific Industrial & Logistics (PILR) has embarked on a share placing to raise £110 mln (€125 mln) for pipeline acquisitions.
London AIM-listed PILR said that the acquisitions include three portfolios of regional and last-mile logistics assets. Sourced as off-market deals, the aggregate acquisition cost will be £170 mln, reflecting a blended net initial yield of 7.2%.
Nigel Rich, non-executive chairman of Pacific Industrial & Logistics REIT, said: 'Since listing in April 2016, we have delivered on our objectives by establishing a strong platform of assets that is delivering significant capital and income growth.
'Having successfully deployed the monies raised at IPO and at the subsequent equity raise, we see a compelling opportunity to significantly expand the scale of our business through a pipeline of off-market acquisitions, enhancing the company's ability to deliver target returns whilst benefitting shareholders by reducing the total expense ratio.'
PILR was formed to invest in last mile and regional logistics properties in the UK with an average lot size of under £10 mln, which are located in established logistics zones and which display the potential for rental growth.
At IPO, the company raised £23.3 mln and targeted a net dividend yield of 6% per annum and a total return over the medium term of between 10% and 15% per annum.
