UK logistics REIT Urban Logistics has exchanged contracts to sell five assets as part of a portfolio for £30 mln (€35 mln) at a 4.8% exit yield, realising a total property return of 78.8%.
The five assets are located in Bedford, Northampton (two warehouses), Leicester and Chesterfield in the UK and have been sold to a joint venture between The Carlyle Group and ARA Dunedin.
The sale – which represents a 35.4% uplift on 30 September 2020 book values - is in line with Urban Logistics' strategy of active portfolio management and value optimisation. Completion is expected to take place on 21 April 2021.
Urban Logistics bought the assets in the past years for an average yield of 7% and has since undertaken extensive asset management with new rents and lease terms agreed across all sites. They are let with an average WAULT of 7.4 years.
The company plans to reinvest the proceeds into other pipeline opportunities.
Richard Moffitt, Chief Executive, commented: ‘Since we started out on our journey in 2016, we have achieved considerable success creating, then realising value across our portfolio once available asset management initiatives have been completed. This deal is the latest example of our proven track record of value creation.’
