Urban Logistics REIT secures four assets

Having successfully refinanced its £151m debt facility, FTSE 250 company Urban Logistics REIT has deployed funds to secure four logistics assets totalling £42.4m.

The business has replaced its existing £100m term loan and £51m revolving credit facility with a new £140m term loan and £50m revolving credit facility.

The four strategic assets will achieve a net yield of 6.6%.

“At our full year results announcement in June, we flagged an arbitrage emerging between debt rates and asset pricing in our pipeline of opportunities,” said director Richard Moffitt.

“We have been able to deploy additional capital into the acquisition of carefully selected buildings at very attractive initial yields.”

“The properties also provide the potential for active asset management opportunities to drive additional income and capital returns for our shareholders.”

“The refinancing provides strong validation of our business from our lenders with our debt maturity extended and our debt costs fixed at attractive rates.”

“With a view to generating a strong total return for shareholders we are actively seeking to sell selected assets where our asset management initiatives have been completed and their sale will deliver an attractive return on investment.”

“We will be reinvesting that capital into assets that not only provide a good income return but also provide asset management opportunities and can therefore provide a meaningful contribution to total return going forward.”

“To that end we have a number of assets already under offer and a strong pipeline of further potential acquisition opportunities.”