Urban Logistics: Leeds-headquartered firm set to be acquired in £700m deal

The companies confirmed on Friday that they had agreed a cash-and-shares deal, which LondonMetric said values warehouse investor Urban Logistics at approximately £698m.

The deal is now set to be voted on by Urban Logistics shareholders next month. If the deal goes ahead, the combined group will hold a stock market value of around £4.4bn.

Commenting on the acquisition, Nigel Rich, independent non-executive chairman of Urban Logistics, said: “The Board of Urban Logistics believes that the Acquisition offers Urban Logistics shareholders a premium price for their shares, an attractive combination of cash and share consideration and ongoing exposure to the logistics sector via a company of greater scale and liquidity.

"Since its initial public offering in 2016, Urban Logistics has assembled an exceptional portfolio of single-let, 'last mile' assets and has outperformed the UK REIT sector and other relevant benchmarks.”

The announcement follows LondonMetric making a string of acquisitions in recent years. The company said that since 2019 it had “pursued a strategy of acquisitive growth”.

The firm completed the acquisitions of A&J Mucklow plc in 2019, CT Property Trust Limited in 2023 and LXi REIT plc in 2024.

LondonMetric is also currently progressing a recommended all-share acquisition of Highcroft Investments PLC, which is expected to complete on 21 May 2025, and said it is “continuously assessing similar potential opportunities”.

The firm’s actions led it to become one of only three commercial property firms to be listed on the FTSE 100, after it joined the list in June of last year.

Speaking on the latest announcement, Andrew Jones, chief executive of LondonMetric, said: "This is an excellent transaction that grows our urban logistics platform and supports our triple net strategy.

“Urban warehousing remains our strongest conviction call for organic rental growth across the UK real estate market. The portfolio is well located, highly reversionary and our asset management focus will ensure that it delivers reliable, repetitive and growing income-led returns.

"We have a demonstrable track record of successfully executing on mergers and acquisitions, and we expect the transaction will deliver substantial synergies, cost savings and accelerated earnings growth.”

Mr RIch added: “I would like to congratulate Richard Moffitt and the rest of the management team on this achievement and to thank them for their commitment and dedication.”