Large UK-based property investment company, Urban Logistics has revealed that is has completed a £9.9 million deal for six parcel distribution depots.
Contracts for the multi-million-pound deal were exchanged on the 20th September 2019 from UK newspaper and magazine distributor Connect Group PLC.
The Connect Group portfolio consists of 84,872 sq ft of warehousing, within this is a mix of freehold and long leasehold properties with depots in Coventry, Newport, Plymouth, Leighton Buzzard, Andover and Perth.
Completion of the portfolio is expected this Friday (27th September) for the freehold properties and by early November for the leasehold properties.
Once completed, the depots will be leased back to Tuffnells Parcels Express (Tuffnells) – a Connect Group subsidiary.
Commenting on the deal, Urban Logistics’ Chief Executive Richard Moffitt said: “We continue to focus on creating value across the portfolio and securing attractive acquisitions. We’re delighted to have further diversified our portfolio, through the leasing agreement with Tuffnells.”
In addition to the deal with Connect Group and Tuffnells, Urban Logistics also announced the purchase of two logistics properties in Sittingbourne and Thatcham for £5.3 million.
With a size of 21,875 sq ft and 26,478 sq ft respectively, the warehouses have been let to DHL.
“Urban Logistics remains real estate’s top-performing sub-sector. Despite the perceived uncertainties created by the political backdrop, we remain focused on growing our portfolio and undertaking asset management initiatives.
“Looking ahead, we have a high-quality acquisition pipeline and continue to assess the potential for additional financing to grow the business. We remain confident in our ability to continue sourcing opportunities which can perform consistently well in the longer term.”