Warehouse REIT PLC Acquisition of Amazon-let warehouse in North West (9549E)
October 24 2018 - 1:00AM
UK Regulatory
TIDMWHR
RNS Number : 9549E
Warehouse REIT PLC
24 October 2018
24 October 2018
Warehouse REIT plc
(the 'Company' or 'Warehouse REIT')
WAREHOUSE REIT ACQUIRES AMAZON-LET LAST MILE DISTRIBUTION
WAREHOUSE IN STRATEGIC NORTH WEST LOCATION
Warehouse REIT, the AIM-listed specialist warehouse investor,
announces that it has exchanged contracts for the acquisition of a
strategically located warehouse in Widnes, Cheshire for GBP2.765
million, reflecting a net initial yield of 7.3%. The asset is fully
let to Amazon UK Services Ltd on a newly agreed five-year lease to
serve the online retailer's last mile distribution requirements
across the surrounding North West region.
Amazon is now the second largest tenant on the Company's rent
role.
The modern warehouse facility offers 48,932 sq ft of high
specification newly-refurbished space which includes two storey
office accommodation and an electrically operated loading bay, all
set within a self-contained 2.5 acre site. The asset is currently
generating a comparatively discounted rental income of GBP216,432
per annum (GBP4.42 per sq ft), offering attractive growth
prospects, while its low capital value of GBP56 per sq ft is less
than the cost of replacement.
The warehouse is located in the heart of the North West in a
prominent location on the established Halebank Industrial Estate in
Widnes, Cheshire, benefitting from excellent motorway access.
Widnes is approximately 14 minutes' drive time from Liverpool
Airport, 30 minutes from both the Port of Liverpool and Manchester
Airport, and only 20 minutes from the M62/M6 interchange, offering
good infrastructure provision for a logistics company. The asset's
tenant is leveraging its strong location by using the facility to
service the distribution of small items being offered for sale by
"Amazon Sellers".
Andrew Bird, Managing Director of Tilstone Partners Ltd, the
manager of Warehouse REIT, commented:
"This transaction is in line with Warehouse REIT's strategic
focus, being located in an established commercial location, close
to urban centres and well connected by strong local transport
infrastructure - exactly what ecommerce businesses are looking for
from a warehouse facility, whilst also enabling us to benefit from
the yield arbitrage following recent disposals of lower yielding
assets.
"The North West industrial market continues to see record levels
of both investor and tenant demand, driven by strong occupational
dynamics, a shortage of new development and the continued regional
growth of the online retail market."
The vendor was represented by B8 Real Estate and Savills advised
Warehouse REIT plc.
-ENDS-
Enquiries:
Warehouse REIT plc via FTI Consulting
Tilstone Partners Limited +44 (0) 1244 470
Andrew Bird, Paul Makin 090
+44 (0) 20 7499
G10 Capital Limited (part of the Lawson Conner 8644
Group),
acting as AIFM +44 (0) 20 3696
Agnese Soldane, Gerhard Grueter 1302
Peel Hunt (Financial Adviser, Nominated
Adviser and Broker)
Capel Irwin, Carl Gough, Harry Nicholas +44 (0)20 7418 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 is a UK Real Estate Investment Trust which owns
and manages 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.
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END
ACQZMMZGVFKGRZM
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