Completion of acquisition

Urban Logistics REIT plc

("Urban Logistics" or the "Company")

Completion of acquisition

Further to the announcement of 11 April 2018, Urban Logistics is pleased to announce that it has completed the first of two portfolio acquisitions totalling £36 million from LondonMetric Plc.

As previously announced, the Company's recent acquisitions comprise two portfolios. It has now completed the acquisition of Portfolio 1 at an aggregate acquisition price of £19.5 million, representing a net initial yield of 6.0%. The gross consideration including costs for Portfolio 1 was £20.8 million.

Portfolio 1 comprises three assets:

§ Alfreton - a 136,383 sq ft warehouse let to DHL Supply Chain on an annual rent of £593,250 until August 2020;

§ Leicester - a 65,194 sq ft warehouse let to DHL Supply Chain on an annual rent of £420,000 until August 2020; and

§ Northampton - a 63,554 sq ft warehouse let to NNR Global Logistics on an annual rent of £240,000 until May 2024, with a rent review due in May 2019.

The acquisition of Portfolio 2, (three urban logistics assets and a plot of land with an aggregate acquisition price of £16.5 million, representing a net initial yield of 5.8%) continues as planned, with completion expected no later than 7 September 2018.

The Company expects the aggregate gross consideration for Portfolios 1 and 2 to be c.£38.7 million, (including purchaser costs of £2.4 million, principally SDLT, and finance costs of £0.3 million) representing a blended net initial yield of 5.9%. The Company will then be fully invested following the April 2018 capital raise.

Portfolios 1 and 2 have an average capital value of £72 per sq ft, substantially below the cost of replacement, with average rents of £4.57 per sq ft and a weighted average unexpired lease term of 5.5 years.

Commenting on the completion, Chief Executive, Richard Moffitt said:

"We are delighted to have progressed our acquisition of assets following the recent Placing. The completed portfolio is let to high-quality tenants whom we know well and with whom we will work to ensure that they get the most out of their facilities."

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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 industrial and 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 industrial and logistics 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 lettable space in industrial and logistics real estate across the UK, (being more than one third lower than the most recent peak of 2009).