Pacific Industrial & Logistics REIT has announced a new share placement to raise gross proceeds of £50 mln (€56.8 mln) to fund the acquisition of a pipeline of UK urban logistics assets for a total of £74 mln.
The company said that the operation is in line with its strategy to build a specialist portfolio of high-quality, last mile and regional single-let urban logistics assets in the UK.
The off-market acquisitions involve two portfolios and a single asset and reflect a blended net initial yield of 6.6%. The portfolios are fully occupied, have a weighted average unexpired lease term of 6.5 years and offer attractive reversionary potential.
Nigel Rich, non-executive chairman, commented: 'The proposed placing and acquisition presents another opportunity to add high-quality UK urban logistics assets to our existing portfolio. With the scale we now have in the company and through our active asset management programme, there is significant upward momentum in our rent roll and capital value. Our investment policy continues to focus on the smaller single-let properties which businesses need to meet the challenges of modern commercial and logistics patterns.'
The company intends to change its name to Urban Logistics REIT, as it believes this change will better reflect its focus and investment strategy.
