Warehouse REIT has bought a four-strong portfolio of warehouses across the North West and West Midlands for £18.6m, completing its investment of a £153m equity raise in the summer.
The purchase price represents a blended net initial yield of 6.1%, with the properties bringing in annual rent of £1.2m.
The largest site in the portfolio is 1 Kingsland Grange in Warrington, a 71,000 sq ft property on the Kingsland Grange Business Park.
The portfolio also comprises Stonebridge Cross in Droitwich Spa, two detached units of 48,000 sq ft; Valley Point in Rugby, a 39,000 sq ft unit on Swift Valley Park; and Milner Street in Warrington, a 42,000 sq ft multilet warehouse.
Andrew Bird, managing director of Tilstone Partners, the REIT’s investment adviser, said the deal “represents an increasingly rare opportunity to acquire a strategic portfolio of assets, in tactical last mile distribution locations, capable of serving the growing e-commerce demand benefiting from ease of access to major UK conurbations in the North West and West Midlands regions”.
He added: “Furthermore, a number of lease events offer the opportunity to increase the longevity and quality of income over the short and medium term.”
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