Seacroft logistics warehouse acquired

Pharmacy2U

A specialist UK industrial and logistics firm has acquired a logistics asset in Leeds for £2.8m.

Pacific Industrial & Logistics has completed the acquisition at Victoria Road, Seacroft. The purchase price represents a net initial yield of 6.8% and the site has a rent of £5 per sq ft, with reversionary potential.

The site comprises of a 41,494 sq ft logistics warehouse which is let to Komori UK and Pharmacy2u on leases through to 2020 and 2022 respectively.

The firm said that the purchase is consistent with the company’s investment strategy of identifying attractively priced stock with asset management potential.

The acquisition has been financed from the company’s existing resources, following its placing in August. The Company continues to evaluate a number of high-quality opportunities in its pipeline and will deploy its capital, together with debt finance where appropriate, to fund acquisitions that meet its investment criteria.

Richard Moffitt, chief executive of Pacific Industrial & Logistics, said: “The acquisition of this well-located institutional-grade logistics property offers attractive asset management opportunities in line with our investment strategy.

“We remain opportunistically acquisitive, focusing on assets that serve the ‘last mile’ needs of a diverse tenant base, especially those responding to the challenges of e-commerce and supply chain constraints.”

Pacific Industrial & Logistics REIT is a property investment company, quoted on the AIM market of the London Stock Exchange.  The firm also owns a 62,117 sq ft site in Morley, which is leased by Puma UK.

Its acquisitions are targeted in the 6.5-7.5% net initial yield bracket, with affordable underlying rents in the region of £4.50-£5.50 per sq ft, on an overall LTV of 35-40% and a significant margin over financing costs.

At the time of its results for the period from IPO on 13 April 2016 to 31 March 2017, the company achieved a 22.6% total shareholder return, including aggregate dividends of 6 pence per ordinary share on an IPO price of 100p.

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