The five assets, of which four are income-producing and one is vacant, were acquired at a blended net initial yield (NIY), post near term asset management of 4.5%.

Urban Logistics paid £46 mln (€54.5 mln) at a NIY of 1.9 for the 9,045 m2 warehouse for frozen good storage in Brent Road, Southall (West London), with two months remaining on the lease, although a new long term lease providing a yield of 4.2% is expected.

For £35.4 mln (€42 mln) at a NIY of 4.7%, the REIT picked up a 23,152 m2 logistics warehouse in Beveridge Lane, Bardon next to the M1, leased to DHL Supply Chain on a lease expiring in 2027.

A 2,890 m2 fully renovated and currently vacant industrial warehouse at Downgate Drive, Sheffield close to the M1 was acquired for £3.12 mln (€3.7 mln) at a target NIY of 6.1%.

For £2.8 mln (€3.3 mln) at a NIY of 6.5%, Urban Logistics purchased a 2,772 m2 logistics warehouse on the West Pitkerro Industrial Estate at Fowler Road, Dundee, let to the DPD Group on a lease expiring in 2027.

The fifth asset is a 2,251 m2 industrial warehouse in the Dodworth Business Park (Silkstone Road, Barnsley), picked up for £2.6 mln (€3.1 mln) at a NIY of 5.2%. The asset is leased to a vintage clothing operator, and the lease is up in 2029.

Richard Moffitt, CEO, commented: ‘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.’