Warehouse REIT has completed two long-term lettings in Plymouth and Coventry totalling 205,000 sq ft.
The urban warehouse and last-mile specialist said the deals would generate more than £1m of annual contracted rent.
Warehouse REIT let its entire 140,000 sq ft building in Coventry to Evtec Aluminium, which makes car parts. The 10-year lease, with no break, will generate contracted rent of £623,000 per annum, equating to around £4.50 per sq ft.
It has also let 66,000 sq ft to 3PL provider Hermes Parcelnet, trading as Evri, at its central Plymouth warehouse. The site will serve as Evri’s key distribution centre for the South West. The 10-year lease with no break clause will deliver an annual rent of £460,000, reflecting an uplift of 36% on the previous passing rent.
The lettings were 24% above ERV and 30% above the previous passing rents.
Paul Makin, investment director at Tilstone, the REIT’s investment adviser, said: “The Coventry transaction is another significant letting to complete in the West Midlands this year and reflects the region’s chronic undersupply of ready-to-occupy warehousing.”
Makin added: “At the company’s Plymouth asset, our highly experienced team has delivered a modern specification warehouse in what is a severely supply constrained local market, enhancing its occupier appeal and enabling us to drive a significant rental and capital value uplift.”
Warehouse REIT was advised by JLL and Savills.
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