Pacific Industrial & Logistics REIT PLC will undertake a placement of new ordinary shares to raise gross proceeds of £50 million, to be used for the £73.6 million acquisition of a pipeline of 16 U.K. urban logistics properties.
With the new shares' admission on the AIM market of the London Stock Exchange, the company will simultaneously rebrand itself as "Urban Logistics REIT plc" and begin trading under the SHED ticker symbol, the trust's nonexecutive chairman, Nigel Rich, said in a news release.
The industrial real estate investment trust noted that new ordinary share certificates will be issued in its proposed name while existing certificates will remain valid, according to a release.
Details of the issuance, such as its final size and pricing, will be disclosed on or before March 29. Pacific Industrial tapped Canaccord Genuity to be the placement's sole book runner, with Radnor Capital and Kinmont Advisory serving as placing agents.
The aggregate gross acquisition consideration for the assets reflects a 6.6% blended net initial yield and translates to a target pipeline capital value of £69 per square foot.
The target properties, comprising two portfolios and a single asset, may be bought in separate off-market transactions within six months of the capital raise. Pacific Industrial said that the deal was subject to the fulfillment of certain conditions, including completion of due diligence, negotiation of terms with the sellers, directors' consent and the placement's closing, which is pending shareholders' approval.
The fully occupied properties yield average rents of £4.87 per square foot for a weighted average unexpired lease term of 6.5 years.
Separately, the industrial assets landlord disclosed its in-principle club financing agreement with lead agent Santander UK for an approximately £76 million term facility.