Acquisition will create property investment group with portfolio worth £7.3bn
Real Estate Investment Trust (REIT), LondonMetric, has agreed terms to acquire Leeds-headquartered Urban Logistics REIT, in a deal valuing Urban Logistics at around £698.9m.
The acquisition values each Urban Logistics share at 150.3 pence. LondonMetric’s take over will create a combined group with a pro forma market capitalisation of £4.4bn and a portfolio worth £7.3bn, making LondonMetric one of the largest UK REITs by market capitalisation.
Following completion of the deal, existing LondonMetric shareholders will hold approximately 89 per cent and Urban Logistics shareholders will hold approximately 11 per cent of the enlarged issued share capital of LondonMetric.
Since 2019, LondonMetric has pursued a strategy of acquisitive growth and has been an active consolidator in the UK listed real estate market.
It has completed the acquisitions of A&J Mucklow plc in 2019, CT Property Trust Limited in 2023 and LXi REIT plc in 2024, while currently progressing a recommended all-share acquisition of Highcroft Investments PLC which is expected to complete on 21 May 2025.
Commenting on the Urban Logistics deal, Andrew Jones, chief executive of LondonMetric, said: “This is an excellent transaction that grows our urban logistics platform and supports our triple net strategy.
“Urban warehousing remains our strongest conviction call for organic rental growth across the UK real estate market.
“The portfolio is well located, highly reversionary and our asset management focus will ensure that it delivers reliable, repetitive and growing income-led returns.
“We have a demonstrable track record of successfully executing on M&A and we expect the transaction will deliver substantial synergies, cost savings and accelerated earnings growth.
“Our scale will continue to deliver enhanced access to capital, more debt optionality, increased share liquidity and larger investment opportunities.”
Nigel Rich, independent non-executive chairman of Urban Logistics, added: “Since its IPO in 2016, Urban Logistics has assembled an exceptional portfolio of single-let, ‘last mile’ assets and has outperformed the UK REIT sector and other relevant benchmarks.
“I would like to congratulate Richard Moffitt and the rest of the management team on this achievement and to thank them for their commitment and dedication.
“The Board of Urban Logistics believes the acquisition offers Urban Logistics shareholders a premium price for their shares, an attractive combination of cash and share consideration and ongoing exposure to the logistics sector via a company of greater scale and liquidity.”
