Warehouse REIT has exchanged contracts for a 170,000 sq ft scheme in Thame, Oxfordshire.
The £35m forward funding deal will see W Lamb, Blakelands and Westhall Estates deliver the multi-let industrial development under a fixed-price turn-key contract.
The 14-unit scheme recently secured detailed planning permission and is scheduled to complete in December. The vendors have agreed a 12-month rent guarantee, equivalent to a 4.6% yield.
The 10.6-acre development will be delivered to the highest sustainability specifications, achieving an EPC rating of A and a BREEAM Excellent certification. Features will include a renewable energy source on site and the buildings will be set up for electric vehicle charging.
Andrew Bird, managing director of Warehouse REIT’s investment adviser, Tilstone Partners, said: “This is a rare opportunity to acquire what we consider will be one of the most sustainable multi-let warehouse schemes in the Oxford area, with strong day-one income guaranteed and the potential to drive rents further over the short, medium and long term. Agreeing a fixed-price basis for the funding with a very well-respected established development team, combined with our ability to drive the letting on site, furthers the transaction’s appeal.”
He added that the deal continued the REIT’s stated strategy of increasing its exposure to the Oxford/Cambridge Arc.
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