Urban Logistics, the specialist UK industrial and logistics REIT (real estate investment trust), has acquired six parcel distribution depots from Connect Group for £9.9 million.
The portfolio has been leased back to a subsidiary of Connect Group, Tuffnells Parcels Express, for 20 years on a fixed rental uplift.
Post-acquisition, Tuffnells – which specialises in B2B distribution of irregular dimensions and weights – will represent approximately 6 per cent of Urban Logistics’ rent roll.
Connect Group chief executive Jos Opdeweegh, said: “The sale and leaseback of this tranche of properties is another step in our strategic plan and ambition to reduce the group’s net debt position.”
Urban Logistics has also purchased two logistics properties in Sittingbourne, Kent, and Thatcham, Berkshire, for £5.3 million. The warehouses are 21,875 sq ft and 26,478 sq ft respectively and let to DHL Parcel UK.