said April 13 that its entire ordinary share capital has been admitted totrading on London's AIM.
Thenewly incorporated, closed-ended company has been created to invest in U.K. industrialand logistics assets, typically with a single tenant. Acquisitions will be onthe smaller end of the scale with an average lot size of £10 million.
Onadmission to AIM, the REIT will issue 10,177,000 new ordinary shares as well as2,000,000 preference shares to raise gross proceeds of £12.2 million.
PacificIndustrial & Logistics REIT is expected to have a market capitalization ofroughly £10.3 million on admission.
FinnCapLtd. was the nominated adviser, broker and placing agent to the company.
TheREIT has conditionally agreed to buy the M1 Portfolio, a collection oflogistics assets in Bardon, Northampton, Bedford and Dunstable, U.K., for £27million. This will be partly financed by a £50 million term loan from SantanderUK, among others. Out of this, £15.5 million is being used to finance the M1Portfolio.
Thecompany is expected to qualify as a REIT following AIM admission and will carryon business as a REIT.
TheREIT is targeting a minimum annualized net dividend yield of 6% by reference tothe issue price following the portfolio acquisition. Over the "mediumterm," it is aiming for a total return of 10% to 15% per annum, assumingflat exit yields, and rental growth of up to 10% per year.
TheREIT is backed by property investor Sir John Beckwith's Pacific Investments, aspreviously reported.