Urban Logistics REIT is planning to raise circa £130m to acquire a pipeline of 59 buildings.
The REIT will launch a placing with shares at 139p to raise round £100m. This reflects a discount of 5.4% from the REIT’s market price as of 18 September, and a 2.1% premium to the adjusted EPRA NAV of 136.1p as of the end of March 2020.
After the placing, which will close on 25 September, the company will launch a retail open offer to raise £600,000, and an institutional offer to raise £29m.
The REIT said the money raised will be used to acquire 59 buildings with a weighted average unexpired lease term of 6.7 years, and a weighted average net yield of around 6.4%.
This should further improve liquidity and broaden its investor base in the long term, the company said.
On the same date as the REIT announces the results of the placing, it will pay a special dividend of 3.25p per share for the six months ending 30 September 2020.
The next dividend the company intends to pay out would be at the time of its final results for the year ending 31 March 2021.
Chief executive Richard Moffitt said: “Our focus is on mid-box logistics assets at the end of evolving logistics chains. These remain in short supply and offer excellent opportunities for investors seeking exposure to this high-growth sub-sector of the real estate market.”
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