Warehouse REIT PLC Acquisition of seven-asset portfolio for £18.25m (0431A)
December 21 2017 - 1:47AM
UK Regulatory
TIDMWHR
RNS Number : 0431A
Warehouse REIT PLC
21 December 2017
21 December 2017
Warehouse REIT plc
(the 'Company' or 'Warehouse REIT')
Warehouse REIT acquires seven-asset industrial portfolio for
GBP18.25 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 GBP18.25
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 GBP167 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 GBP3.49 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 +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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