|
Urban Logistics REIT PLC on Friday announced acquisitions, two days after recommending that shareholders vote against replacing its board. The UK-focused logistics real estate investment trust said it is buying two ‘attractive’ assets for £21.1 million at a blended net initial yield of 7.34% and a blended reversionary yield of 7.64%. The acquisitions provide increased rental income and opportunities from active asset management, Urban Logistics highlighted. Chair Nigel Rich said: ‘These acquisitions further demonstrate the efficacy of our proactive income and capital growth strategy. ‘We continue to be encouraged by our strong pipeline of asset management opportunities and are confident that the team’s expertise in this highly specialised real estate sub-sector will increase earnings and asset value to deliver attractive shareholder returns.’ On Thursday, Achilles Investment Co Ltd responded to an announcement from Urban Logistics. Achilles noted that it awaits an ‘inevitable reworked proposal’ after Urban in early March had proposed terms for internalisation. Achilles’ Lead Investment Manager Robert Naylor said: ‘It appears that the board is backpedalling as quickly as possible. ‘Shareholders are clearly expressing genuine concern as to the governance of Urban Logistics, and it’s time for a fresh perspective to examine the relationship between the investment manager and the board.’ Achilles proposed that Kinovo PLC Chair Sangita Shah be elected to the board of Urban Logistics. On Wednesday, Urban Logistics confirmed it had received a letter from Waverton Investment Management Ltd, TR Property Investment Trust PLC, North Atlantic Smaller Cos Investment Trust PLC and Harwood Capital Management Gibraltar Ltd on behalf of Achilles requisitioning a general meeting of the company. It said the letter proposed the removal of Chair Nigel Rich, and of Chief Executive Officer of Logistics Asset Management Richard Moffitt, and Heather Hancock, and the appointment of Robert Naylor and Sangita Shah as directors of the company. ‘The board will be recommending that shareholders vote against all of Achilles’ proposed board changes,’ Urban Logistics said Wednesday. In early March, Urban Logistics said a planned internalisation would take place via the acquisition of the management vehicle. Urban Logistics had said the proposal has been agreed upon with its investment adviser, Logistics Asset Management LLP. Under the plans, Richard Moffitt would become chief executive officer. Justin Upton and Jamie Waldegrave would join the board of the company as chief investment officer and chief financial officer respectively. The initial payment for the internalisation would be £6.8 million, to be paid in Urban Logistics shares. Urban Logistics shares were 0.5% higher at 133.20 pence each late on Friday morning in London, giving it a market capitalisation of £619.5 million. Copyright 2025 Alliance News Ltd. All Rights Reserved.
|
