The real estate investment trust has acquired a 170,000 sq ft warehouse in Bromborough in an off-market deal for £16.3m.
In a stock exchange filing today, Urban Logistics Reit said it acquired the property at Wirral International Business Park at a net yield of 5%, as part of the deployment of capital raised from the company’s £90m fund raise last September.
The warehouse on Thermal Road was built in 2011/12 to a BREEAM ‘excellent’’ standard and is let to logistics firm Great Bear Distribution, part of the Culina Group, which operates a Nestlé cereal contract, on a £4.97/sq ft lease until January 2022. After that, a reversionary lease with a ‘cap and collar’ rent of £5.15 to £5.50/sq ft has been agreed until January 2023. A rent review is due in 2027.
Great Bear’s manufacturing plant is conveniently located adjacent to the property. As part of the deal, Urban Logistics has acquired an acre of land to accommodate future extensions to the building and yard.
Wirral International Business Park is located one mile from the M53, well located for ‘last mile’ logistics firms seeking to distribute across the North West.
Urban Logistics’ chief executive Richard Moffitt said: “This is a high-quality off-market acquisition that formed part of our pipeline. This site with its reversionary lease is well-located and offers an excellent opportunity for value enhancement over the long term through active asset management.”
The name of the vendor was not disclosed.