Urban Logistics REIT plc

("Urban Logistics" or the "Company")

£22 Million of Acquisitions and Rent Collection Update

Urban Logistics, (AIM: SHED) the specialist UK logistics REIT, announces the acquisition of two assets for a total consideration of £21.7 million at a 6.14% NIY.

Richard Moffitt, Chief Executive, commented:

"We are delighted to announce the acquisition of these high-quality assets in Warrington and Edinburgh which are well positioned to deliver essential goods that "last mile" to customers and businesses in two important local markets. In line with our strategic focus of value enhancement, both assets offer asset management opportunities in the short to medium term given the low passing rents."

The Acquisitions

Warrington

On 6 April 2021, the Company acquired a well-specified and recently refurbished 110,859 sq ft distribution unit for £8.5 million at a 6.05% NIY. It is let to Mark Thompson Transport, part of Kinaxia Logistics, for a term of 10 years through to 2030. The rent is £4.94 per sq ft and there is an open market rent review in 2025. This asset is close to the arterial M6/M56 interchange.

Edinburgh

The Company has exchanged contracts on an asset in Milton Link, Edinburgh. The 7-acre site comprises a 75,478 sq ft warehouse, which trades as 'The Range', and a 'drive-through' of 1,845 sq ft let to Costa Coffee. The asset is to be purchased for £13.2 million at a 6.2% NIY and is located 5km east of Edinburgh city centre. The rent for the warehouse is £10.51 per sq ft and is let through to 2033 with 5 yearly rent reviews. The 'drive-through' rent is £40.65 per sq ft and the building is let through to 2034. This asset has reversionary long-term income and asset management potential.

Rent Collection Update

The Company has received 99% of rent due for the quarter to June. The remaining 1% is expected to be collected imminently.

M1 Agency Fees

The Company has incurred, on an arm's length and commercial basis, property agency fees from M1 Agency LLP of £85,000 for the Warrington acquisition. M1 Agency LLP is a partnership in which Richard Moffitt is a designated member. In accordance with Rule 16 of the AIM Rules, fees payable in respect of the acquisition have been aggregated with all fees paid to M1 Agency LLP since 1 March, being the date of the Company's last related party disclosure and associated fairness opinion, in respect of M1 Agency LLP. These aggregated fees total £511,000 and are considered a related party transaction for the purposes of the AIM Rules.

The independent Directors, having consulted with N+1 Singer Advisory LLP, consider the terms of the related party transaction fair and reasonable insofar as the Company's shareholders are concerned.

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About Urban Logistics REIT

Urban Logistics REIT plc is a property investment company, quoted on the AIM market of the London Stock Exchange, (AIM: SHED).

The Company has been established to invest in UK-based logistics properties with the objective of generating attractive dividends and capital returns for its shareholders. Its investment strategy focuses on strategically located smaller single let properties servicing high-quality tenants. Investment returns will be generated by an experienced management team focusing on quality stock selection and active asset management.

A number of structural and commercial factors currently support the attractive opportunity in the last mile/regional industrial and logistics real estate sub-sectors targeted by the Company, including: strong occupier demand, (driven by the growth of e-commerce and investment by retailers in their associated supply chain) and a decline in the supply of smaller sized lettable space in industrial and logistics real estate across the UK.