Atlantic Leaf strengthens UK industrial footprint with latest acquisition


Atlantic Leaf Properties Limited has announced a GBP 9 million acquisition of a new industrial property based in Denby in the United Kingdom.

The transaction was Atlantic Leaf’s fifth acquisition of industrial property in the last three months. Atlantic Leaf has now fully redeployed the proceeds from the disposal of its investment in the retail warehouse sector earlier in the year and in so doing has increased its industrial exposure by value to 79%, up from 70% at the 2019 year-end.

Commenting on the acquisition, CEO Paul Leaf-Wright said:

We are pleased to have completed the transaction on this brand-new distribution warehouse at an attractive net initial yield of 6.35% on a strong long-term lease. In our view, the industrial and distribution warehouse sector in the United Kingdom remains attractive and continues to benefit from the growth being experienced in underlying rentals and general demand driven by increasing volumes in e-commerce and logistics“.

For the financial year to date, Alantic Leaf Properties has managed to secure investment of GBP 40 million in a mix of five individual new and existing industrial properties at a blended net initial yield of 6.7%, all of which we think will positively contribute to our earnings over time.”

In line with the company’s overall gearing policy, the company has secured a new three-year credit facility from Lloyds Bank and has fixed 100% of the debt at a rate of 2.5%.

We are very pleased to have introduced Lloyds Bank as a new funding relationship and the terms of the facility provides for Atlantic Leaf to grow this new relationship with Lloyds,” Financial Director Mark Pryce said.

The accommodative swap rates in the market has allowed us to fix the cost of the new debt at rates lower than the weighted cost of our existing debt. The loan to value on the new debt is lower than the existing loan to value of the group and will assist in the objective of reducing the overall loan to value of the group over the medium-term”.

Paul Leaf-Wright concluded: “Atlantic Leaf is fully invested in properties with long-term leases in place, which underpins our income. We also have debt that only matures on average in 3-4 years. We believe that the combination of these should see us through the period of uncertainty currently being created by Brexit.”