UK REIT Urban Logistics is targeting a premium listing on the main market of the London Stock Exchange via a fundraising of up to £108 mln (€125 mln).
The last mile logistics firm is planning to place around 70 million new shares at a price of 155 apiece, representing a discount of 5.2% to the company's closing share price of 163.50 pence on the day prior to the announcement, and a 3.5% premium to the company’s adjusted EPRA net tangible assets of 149.8 pence per Ordinary Share as at 31 March 2021.
The proceeds will be used to acquire ‘attractive investment opportunities’, the majority of which have been sourced off-market. The deal pipeline has an average net initial yield of 6.1%.
‘Urban Logistics' existing funds are fully invested or committed and the company has a strong pipeline of attractive off-market opportunities,’ the company said in a statement, adding that the transactions are expected to be accretive to earnings per share from the first full financial year.
During the past year the company's portfolio more than doubled in value from £207 mln to £508 mln driven by two capital raises in 2020 and strong underlying performance.
Ongoing momentum in the sector, with a portfolio acquired through targeted off-market transactions, and the benefits of the company's asset management programme, saw a rise in the portfolio valuation on a like-for-like basis of over 13%.
The shares are expected to be placed by July 12.