Forward funding deal agreed for logistics hubs

A £15.4m deal to bring forward a a series of logistics units at business parks in Staffordshire and Leicestershire has been signed.

Urban Logistics, the specialist UK industrial and logistics REIT, has exchanged contracts with Carbide Properties, conditional on receipt of planning permission, for the forward funding of two logistics hubs at Stone Business Park and Lime Kilns Business Park in Hinckley.

The gross development value of the acquisition is £15.4m and will be financed from the company’s cash resources including the proceeds from two property sales and with debt from its existing club facility.

The site at Stone will comprise four logistics units with a total gross internal floor area of 86,000 sq ft.

The site at Hinckley will comprise two units with a total gross internal floor area of 63,500 sq ft.

Construction is expected to start in June 2019 and practical completion for Stone and Hinckley is being targeted for December 2019 and January 2020 respectively.

Richard Moffitt, chief executive, said: “These acquisitions will add high quality new assets to the company’s portfolio at a time when smaller urban logistics sites are in short supply. We have experienced strong interest from prospective tenants and expect to be fully pre-let by the time both assets reach practical completion.

“Today’s acquisition is another example of our approach to selecting the right properties, creating value through asset management and recycling capital into new opportunities to deliver sustainable long-term shareholder value.”

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