The £735.7m Urban Logistics investment trust is looking to raise £200m through an equity issue and is applying to be admitted to the premium segment of the London Stock Exchange (LSE).

The trust, which is focused on industrial and logistic properties, will fundraise through initial placing, offer for subscription and intermediaries offer. The issue price will be 170 pence, a discount of 4.2% to the closing share price on 12 November.

The net proceeds will be used towards a pipeline of assets in excess of £400m, according to the company and will be deployed within three to six months.

The company last raised money in July and has fully deployed or committed the £108m raised.

Nigel Rich CBE, independent non-executive chair, said the trust has experienced “transformative growth” in the past number of years.

Richard Moffitt, chief executive, added “the UK urban logistics and distribution markets have undergone a permanent paradigm shift since the Covid-19 pandemic began, with supply chain security and a ‘just in case’ approach replacing the ‘just in time’ philosophy of previous years”.

“Our portfolio and the pipeline we have sourced offer exactly what tenants are seeking in terms of location, size and quality. We are confident that this pipeline will offer compelling opportunities for value enhancement.”

Directors of the trust also believe the size of the trust will approach the £1bn mark following the fundraising justify it applying to the main market of the stock exchange.

The company said applications will be made to the FCA and the LSE and hopes to be admitted around 7 December.

Rich said: “Through dialogue with our largest shareholders and other stakeholders, we believe that our market capitalisation now justifies a move to the premium segment of the main market.

“We believe that admission is in the best interests of our shareholders, affording access to a larger pool of capital, raising our profile and improving liquidity.

“We look forward to continuing to pursue our growth strategy and to delivering value for all our stakeholders.”

Applications to participate in the fundraising will open later today (15 November) and will close on 2 December.

The trust is trading on a 7.5% premium to its net asset value, according to the Association of Investment Companies.