TIDMWHR
RNS Number : 6851U
Warehouse REIT PLC
30 March 2023
30 March 2023
Warehouse REIT progresses disposal strategy with GBP54.7 million
of sales
Disposals, active management and robust UK warehouse tenant
demand has increased portfolio occupancy to 95.9%, up from
92.7%
Warehouse REIT ("the Company"), the industrial warehouse
investor, announces continued progress delivering on its strategy
to capture the inbuilt reversion across its 8.3 million sq ft
portfolio, whilst also recycling proceeds through sales to pay down
its overall level of debt.
Asset Disposals
In line with its strategy, the Company has recently concluded
the sale of two distribution estates totalling 269,000 per sq ft,
for GBP29.5 million, generating an ungeared IRR of 9%.
The disposals comprise:
-- 12 Exeter Way, Theale, a vacant 92,000 sq ft warehouse with a
high office component, acquired by an owner occupier for GBP15.0
million.
-- Temple House, Harlow, for GBP14.5 million. The asset has been
sold ahead of a potential vacancy and capital expenditure costs,
following the receipt of notice to break from the main tenant in
March 2023.
These disposals, in addition to the GBP13.9 million of sales
announced at the half year results on 8 November 2022, have been
augmented by another GBP11.3 million of smaller asset sales, taking
total H2 disposals to GBP54.7 million.
Asset Management
Additionally, reflecting the robustness of the UK occupational
market, the Company has reduced portfolio vacancy through active
asset management initiatives and disposals, increasing the
portfolio occupancy to 95.9% (as at 28 February 2023), from 92.7%
(as at 7 November 2022).
Significant transactions include Midpoint 18, where the Company
has exchanged on a new 10-year lease with a 5 year break, on
previously vacant commercial space, to Inhealth Intelligence, a
leading software provider of information management solutions for
the UK healthcare sector, generating rent of GBP0.2 million per
annum. Midpoint 18 is strategically located near the M6 motorway in
Cheshire and totals c. 600,000 sq ft of multi and single tenant
space.
Separately, the Company has also completed the construction, for
GBP3.9 million, of an open storage scheme on surplus land at
Midpoint 18. Brit European, an international specialist logistics
occupier, has agreed a 15 year lease for the purpose built
facility, generating GBP0.3m per annum of rent. Brit European is
being relocated from the Company's nearby Radway Green Estate,
facilitating vacant possession and advancing the wider
redevelopment.
Paul Makin, Investment Director of the Investment Advisor,
Tilstone Partners Limited, commented:
"We continue to make strong progress on delivering on the
Company's strategy to minimise vacancy, capture the portfolio's
inbuilt reversion and reduce debt. We have taken advantage of
continued investor demand for exposure to the sector by arranging
for the Company to undertake two further opportunistic disposals of
assets requiring significant capital expenditure, simultaneously
demonstrating the ongoing liquidity of the Company's real estate.
In total, the Company has completed GBP54.7 million of sales during
H2.
"Occupationally, the UK logistics market remains robust,
evidenced by the progress on increasing occupation across the
portfolio. The transactions at Midpoint 18 also demonstrate the
acute shortage of good quality accommodation in the North West
market, as well as the benefits of the locations of the Company's
assets, close to key infrastructure and employment hubs."
-End-
Enquiries:
Warehouse REIT plc
via FTI Consulting
Tilstone Partners Limited
Andrew Bird, Paul Makin, Peter Greenslade
+44 (0) 1244 470 090
G10 Capital Limited (part of the IQEQ Group, AIFM)
Maria Glew
+44 (0) 207 397 5450
FTI Consulting (Financial PR & IR Adviser to the
Company)
Dido Laurimore, Richard Gotla
+44 (0) 7904 122207 / WarehouseReit@fticonsulting.com
Further information on Warehouse REIT is available on its
website:
http://www.warehousereit.co.uk
About Warehouse REIT
Warehouse REIT plc invests in and manages urban and 'last-mile'
industrial warehouse assets.
Our purpose is to own and manage warehouses in economically
vibrant urban areas across the UK, providing the space our
occupiers need for their businesses to thrive.
As we grow, our vision is to become the UK's warehouse provider
of choice.
The Company is listed on the Main Market of the London Stock
Exchange and 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.
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END
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