Warehouse REIT PLC Acquisition of four industrial estates for £26m (6392R)
September 25 2017 - 1:01AM
UK Regulatory
TIDMWHR TIDMHSTN
RNS Number : 6392R
Warehouse REIT PLC
25 September 2017
25 September 2017
Warehouse REIT plc
(the 'Company' or 'Warehouse REIT')
Warehouse REIT Exchanges on GBP26m Pipeline Acquisitions
Following the successful GBP150 million fundraise and subsequent
admission to AIM on Wednesday 20 September 2017, the Board of
Warehouse REIT plc (ticker: WHR), the specialist warehouse
investor, is pleased to announce its first pipeline acquisitions,
which follows the initial Tilstone Portfolio purchase for GBP108.85
million.
The pipeline assets described in the Company's prospectus
included four multi-let industrial estates in England which were at
an advanced stage of negotiations. Contracts have now been
exchanged with Hansteen Holdings plc to acquire these assets for a
total consideration of GBP26.25 million plus costs, reflecting a
net initial yield of 7.5%. Two of the estates are located in the
North West, one in the Midlands and one in the South East, are all
either in urban areas or on strategic infrastructure links and
their purchase is in line with the REIT's investment strategy. The
estates cover a total floor area of 603,000 sq ft and generate an
annual net rent of GBP2.11 million. With an average passing rent
equating to GBP3.50 psf, the Company believes there is potential
for long term rental growth.
Commenting on the transaction, Neil Kirton, Non-Executive
Chairman of Warehouse REIT, said:
"This transaction is firmly in line with our investment strategy
set out at the time of the IPO, for good quality, well located
assets with plenty of opportunities to enhance value through asset
management. Whilst the vendor has run a successful letting campaign
with voids down to 9% of ERV, this reflects slightly more than the
national average which is characterised by a shortage of
well-located warehouse stock, driven by the structural shifts
taking place in last mile delivery. The Tilstone management team
believe that the assets offer potential for further rental
growth."
-ENDS-
Enquiries:
Warehouse REIT plc via FTI Consulting
Tilstone Partners Limited +44 (0) 1244
Andrew Bird, Paul Makin 470 090
G10 Capital Limited (part of the Lawson Conner Group),
acting as AIFM +44 (0) 20 3696
Agnese Soldane, Gerhard Grueter 1302
Peel Hunt (Financial Adviser, Nominated Adviser and
Broker) +44 (0)20 7418
Capel Irwin, Edward Fox 8900
FTI Consulting (Financial PR & IR Adviser to the
Company) +44 (0) 20 3727
Dido Laurimore, Ellie Sweeney, Richard Gotla 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 GBP150 million (GBP146.8 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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