22 September 2021

Urban Logistics REIT plc

("Urban Logistics" or the "Company")

Acquisitions Update

Since the July equity raise of £109m Urban Logistics has deployed, or committed to deploy, £88m of this equity on 771,748 sq. ft. of logistics units in 6 'off market' transactions. The blended net initial yield (NIY) was 5.4% and is made up of a combination of income producing assets and forward funding commitments. Separately a further £15m was deployed before this equity raise, in 3 transactions for 157,516 sq. ft. of space.

The Manager continues to transact on its pipeline of attractive investment opportunities and expects to deploy the remaining proceeds of the equity raise as well as draw down on available debt facilities as planned.

Richard Moffitt, Chief Executive, commented:

"We are delighted to have acquired these high-quality assets off market with attractive yields and value enhancement potential, in line with our investment strategy. These properties are strategically positioned in areas with excellent transport links, strong demand for stock and limited supply.

The value created by our strategy is, we believe, demonstrated not only by the quality of these acquisitions but also the 11 lettings and lease events signed in the period, covering 702,206 sq ft. of space. With the UK's fundamental mismatch between the demand for last-mile logistics assets and their availability, the Company, with its unparalleled network and sector knowledge, is uniquely placed to drive significant rental and capital value growth for shareholders."

Acquisitions

The recent acquisitions are principally focused on the Midlands and South East, but also include a well located asset just off the M62 between Manchester and Leeds (Rochdale), as well as in the South West in Exeter where a new logistics hub is emerging.

These acquisitions bring the total portfolio to 6m sq. ft. and are made up of the following transactions.

Purchase of income producing assets financed through equity raised in July:

·      Three units in Farnham, totalling 43,958 sq. ft. for £8.5m, a NIY of 4.5%.

·      A 25,990 sq. ft. unit near Ipswich for £2.7m at a NIY of 5.5%.

·      A 50,672 sq. ft. unit at Wellingborough for £3.6m at a NIY of 5.2%.

·      Two units in one transaction: a 128,460 sq. ft. property in Rugby and a 124,134 sq. ft. property in Huntingdon for a combined purchase price of £27.6m, and a NIY of 4.5%

Forward funding commitments financed through equity raised in July:

·      In one transaction, forward funding four units totalling 118,540 sq. ft. on an attractive, well-managed business park near Rochdale, as well as a single unit of 44,608 sq. ft. in Castle Donnington, just off the M1 south of Nottingham. The combined price was £17.4m at a NIY of 6.2%. This is in addition to the earlier phase of this project (already announced but financed through this equity raise) of £23m of forward funding commitments at a 6.2% yield.

·      Extending our existing presence in the key Exeter Gateway logistics park by forward funding a new building of 26,964 sq. ft for £4.8m. The project benefits from guaranteed rent at a NIY of 5.3%. The Company already has a number of units locally.

Income producing assets acquired purchased prior to the July equity fundraise:

·      A site in Nottingham containing four units totalling 119,522 sq. ft., for £11.3m, representing a NIY of 6.4%.

·      A 14,510 sq. ft. unit in Theale for £3.3m, with an NIY of 5.3%.

·      An 11,906 sq. ft. unit at Brierley Hill, to the west of Birmingham for £1.1m, at a NIY of 5.0%.

- Ends -

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About Urban Logistics REIT

Urban Logistics REIT plc is a property investment company, quoted on the AIM market of the London Stock Exchange, (AIM: SHED).

The Company has been established to invest in UK-based logistics properties with the objective of generating attractive dividends and capital returns for its shareholders. Its investment strategy focuses on strategically located smaller single let properties servicing high-quality tenants. Investment returns will be generated by an experienced management team focusing on quality stock selection and active asset management.

A number of structural and commercial factors currently support the attractive opportunity in the last mile/regional industrial and logistics real estate sub-sectors targeted by the Company, including: strong occupier demand, (driven by the growth of e-commerce and investment by retailers in their associated supply chain) and a decline in the supply of smaller sized lettable space in industrial and logistics real estate across the UK.