Warehouse REIT buys four industrial estates in first deal after IPO
Specialist warehouse investor Warehouse REIT announced its first pipeline acquisitions on Monday following its admission to AIM last week.
Warehouse Reit
79.70p
16:49 26/04/24
The pipeline assets include four multi-let industrial estates in England and the company said contracts have now been exchanged with Hansteen Holdings to acquire the assets for £26.25m 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, and are all either in urban areas or on strategic infrastructure links. The estates cover a total floor area of 603,000 sq ft and generate an annual net rent of £2.11m.
Non-executive chairman Neil Kirton 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."
At 13300 BST, the shares were up 1.5% to 103p.