Urban Logistics, the last mile logistics focused REIT, has acquired warehouses in Sheffield and Barnsley as part of a wider £90 million swoop.
The property at Downgate Drive, Sheffield is a 31,105 sq ft, newly refurbished industrial warehouse close to the M1. The purchase price paid was £3,120,000. The unit is currently vacant and is being marketed.
The property at Silkstone Road, Barnsley is a 24,230 sq ft industrial warehouse located in the Dodworth Business Park. The purchase price paid was £2,600,000.
The unit is let to a vintage clothing operator, who process and sort textile recycling on site, with the lease expiring in 2029.
Richard Moffitt, Chief Executive, said: “During recent market volatility we have been deliberately patient in our deployment, and that patience has been rewarded by our ability to acquire these properties in prime locations on advantageous terms.
“Our occupational market, with its focus on supply chains for essential goods, remains strong with continued upward pressure on rents. We firmly believe that, at any stage in the property cycle, if we improve lease lengths we will see yield compression.
“We therefore see substantial potential valuation increases in these acquisitions, driven by our asset management plans.”
