Urban Logistics picks up Crown portfolio for €54m

UK REIT Urban Logistics has acquired the seven-property strong Crown logistics portfolio in the UK in an off-market deal worth £47.2 mln (€54 mln), or a net initial yield of 7%.

The seven distribution sites, with an average size of 84,105 sq ft, are located in Aberdeen, Huntingdon, Blackpool, Ipswich, Newmarket, Plymouth and Rotherham. They were bought from funds controlled by Legal & General Investment Management.

With a weighted average unexpired lease term of eight years the portfolio offers asset management opportunities as well as secure income from high-quality tenants.

Giant Booker, the food wholesaler owned by Tesco, represents 31% of the portfolio's rental income.

‘These properties are well located, close to labour availability and population centres, have strong tenant covenants and offer a range of asset management opportunities,’ said Richard Moffitt, Chief Executive.

He added: ‘We have now deployed £103 mln of the £136 mln raised in March and will continue to adopt a patient and cautious approach as we build the portfolio. Our strong balance sheet enables us to look opportunistically at properties which offer attractive returns and complement our existing portfolio.’

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