Warehouse REIT has acquired four multi-let industrial estates for £26.3m – its first pipeline acquisitions following its admission to the London Stock Exchange last month.
The specialist urban warehouse investor has exchanged contracts with Hansteen Holdings to acquire the sheds for 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. They are all either in urban areas or on strategic infrastructure links and their purchase is in line with the REIT’s investment strategy. The estates cover a total floor area of 603,000 sq ft and generate an annual net rent of £2.1m. With an average passing rent equating to £3.50 per sq ft, the company believes there is potential for long-term rental growth.
Warehouse REIT was admitted to AIM on 20 September, after raising £150m in its initial public offering. The deal follows from the acquisition on admission of the Tilstone industrial property portfolio for £108.5m.
Neil Kirton, non-executive chairman of Warehouse REIT, 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.”
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