Asset selection is central to the successful implementation of our strategy.

Our acquisition criteria balance a range of factors to ensure we buy the right assets at the right price; and that there are opportunities for us to add value through our active asset management approach.

Investment Objective

The Investment Objective is to deliver total investment returns through both income, with regular dividends providing Shareholders with a sustainable income stream that will grow over the medium term, and targeted capital growth which the Company believes will enhance Shareholders' total return over the long term.


The Company intends to achieve the Investment Objective by investing in and growing a diversified portfolio of primary and secondary grade industrial and logistics properties within the UK, and by engaging in active asset management to leverage and enhance returns.

The Company will invest in assets that comprise an interest in freehold or leasehold property (other than by way of security), which meet the following criteria:

  • UK industrial or logistics properties (typically single let);
  • modern (typically post-1980) constructions; and
  • representing average lot value across the portfolio at acquisition of up to £15 million (increased by RPI from Admission).

The Company will seek to invest in strategically located, single let, last mile industrial and logistics properties that have good underlying features, including:

  • the opportunity for rental growth and out-performance;
  • strong tenant financial covenant;
  • lease terms focusing on duration and rental growth; and
  • positive geographical characteristics, including age and repair, location, building quality, site cover, transportation links, workforce availability, environmental performance and internal operational efficiencies.

The properties will be located in established logistics regions, such as the Midlands' "Golden Triangle", and in locations where the Company sees medium and long-term potential.

The Company may acquire properties directly or through holdings in SPVs and properties may be held through limited partnerships, trusts or other vehicles with third party co-investors.

Borrowing and gearing policy

The Company will seek to use gearing to enhance returns over the long-term and, in addition, will seek to fix its borrowing rates. Gearing, represented by borrowings as a percentage of gross assets, will not exceed 57.5% at the time of investment.  It is the Directors' intention to target gearing of 30% to 40% of Gross Asset Value in the medium term and to comply with the REIT condition relating to the ratio between the Group's ‘property profits' and ‘property finance costs'.

Use of derivatives

The Company may enter derivative contracts for efficient portfolio management. In particular, the Company may engage in interest rate hedging or similar instruments to mitigate the risk of interest rate increases.

Investment restrictions

The Company will invest and manage its assets with an objective of spreading risk through the following investment restrictions which, in each case, apply at the time of investment:

  1. The Company will derive its rental income from a portfolio of not less than ten properties;
  2. The Company will have a maximum exposure of 25% of its rental income derived from any single tenant;
  3. the Company may invest up to 10% of its Gross Asset Value in non-income producing properties with pre-let tenancies (or otherwise guaranteed income) in place, but which are requiring development or re-development (such as extending, reconfiguring and refurbishing existing assets), to realise that income, with the intention of holding any completed development as an investment. The investments in this category will not be undertaken speculatively, although the Company may take options over adjacent land/property. The Company may finance these assets using, inter alia, forward funding arrangements.
  4. the Company may invest up to 10% of its Gross Asset Value in assets (including development assets), which are not producing income at the time of acquisition, including assets that do not have pre-let tenancies (or otherwise guaranteed income) in place;
  5. at least 90% by value of the properties directly or indirectly owned by the Company shall be in the form of freehold or long leasehold (over 60 years remaining at the time of acquisition) properties or the equivalent; and
  6. the Company will not invest in closed-ended investment companies.

The Directors currently intend, at all times, to conduct the affairs of the Group so as to enable it to qualify as a REIT for the purposes of Part 12 of the CTA 2010 (and the regulations made thereunder).

In the event of a breach of the investment guidelines and restrictions set out above, a notification will be made to a Regulatory Information Service if the Directors consider the breach to be material.

No material change will be made to the Investment Objective or the Investment Policy without the approval of the FCA and Shareholders by ordinary resolution at any general meeting, which will also be notified by a RIS announcement.