21 December 2017
Warehouse REIT plc
(the 'Company' or 'Warehouse REIT')
Warehouse REIT acquires seven-asset industrial portfolio for £18.25 million
Warehouse REIT, the specialist warehouse investor, announces that it has exchanged contracts to acquire a portfolio of seven industrial assets in the North West of England for £18.25 million, reflecting a net initial yield of 7%. This latest transaction, which will complete over the course of today, brings the Company's assets under management to £167 million, as it continues to successfully deploy the proceeds of its AIM listing in September 2017.
The portfolio totals 326,254 sq ft and comprises a diverse mix of asset types with an average unit size of 15,000 sq ft, as follows:
- Road One, Winsford (78,178 sq ft warehouse)
- Parkway Zone 2, Deeside Industrial Estate, Chester (60,081 sq ft production facility)
- Quantum Park, Manchester (46,507 sq ft trade counter)
- Europa Trading Estate, Kearsley, Manchester (40,000 sq ft warehouse)
- Wardley Industrial Estate, Manchester (38,901 sq ft warehouse)
- Linkway Industrial Estate, Middleton (48,074 sq ft warehouse)
- The Oakfield Centre, Sharston, Manchester (14,513 sq ft warehouse)
All assets are situated in established industrial locations within the 'Northern Powerhouse' region. The assets each benefit from excellent motorway connections and are all either in urban areas or on strategic infrastructure links, 5 of the assets are within only 6 miles of Manchester City Centre - in line with the REIT's 'last mile' investment strategy.
Demonstrating the strength of tenant demand for the portfolio, it has been acquired with less than 4% voids. A low average industrial passing rent of £3.49 psf presents significant reversionary potential, while c. 72,000 sq ft of space is subject to lease expiries within the next year, providing management with a near-term opportunity to grow rents 12% to ERVs. Furthermore, potential planning for 24,000 sq ft of additional space creates opportunity to increase rents over the long term through this acquisition.
Commenting on the transaction, Neil Kirton, Non-Executive Chairman of Warehouse REIT, said:
"This portfolio, and the attractive yield at which it has been secured, clearly fits with Warehouse REIT's investment strategy of acquiring good quality, well located assets that offer compelling opportunities to enhance value through asset management. We look forward to integrating these assets into our wider portfolio while we continue to source new opportunities to effectively deploy the remainder of our IPO proceeds in order maximise the income returns we deliver for shareholders."
The Vendor was advised by Stewart Montrose on this transaction.
-ENDS-
Enquiries:
Warehouse REIT plc via FTI Consulting
Tilstone Partners Limited Andrew Bird, Paul Makin |
+44 (0) 1244 470 090 |
G10 Capital Limited (part of the Lawson Conner Group), acting as AIFM Agnese Soldane, Gerhard Grueter |
+44 (0) 20 3696 1302 |
Peel Hunt (Financial Adviser, Nominated Adviser and Broker) Capel Irwin, Edward Fox |
+44 (0)20 7418 8900 |
FTI Consulting (Financial PR & IR Adviser to the Company) Dido Laurimore, Ellie Sweeney, Richard Gotla |
+44 (0) 20 3727 1000 |
Further information on Warehouse REIT is available on its website:
http://www.warehousereitplc.co.uk
Notes to editors:
Warehouse REIT announced the results of its IPO on 15 September, having raised gross proceeds of £150 million (£146.8 million net) to invest in a diversified portfolio of UK warehouse assets located in urban areas.
Occupier demand for urban warehouse space is increasing as the structural growth in e-commerce has driven the rise in internet shopping and investment by retailers in the "last mile" delivery sector. The urban warehouse sector offers one of, if not the highest, initial yield of all UK property sectors.
The Company is an alternative investment fund ("AIF") for the purposes of the AIFM Directive and as such is required to have an investment manager who is duly authorised to undertake the role of an alternative investment fund manager. The Investment Manager is currently G10 Capital Limited, whose role will pass to Tilstone Partners Limited ("TPL"), on receipt of FCA approval.
