Warehouse REIT has exchanged contracts to acquire the Midpoint Estate in Middlewich, Cheshire for £15.5m.
The acquisition of the 182,500 sq ft multi-let estate reflects a net initial yield of 6.6%.
The Midpoint Estate comprises 20 individual warehouse units ranging from 2,300 sq ft to 31,600 sq ft, located two miles from junction 18 of the M6 motorway, south of Manchester.
Warehouse REIT’s acquisition was conducted off-market, funded from its recently extended bank facilities with HSBC.
Andrew Bird, managing director of Tilstone Partners, asset manager of the scheme, said: “We are witnessing strong levels of occupational demand, which ties into the recent news of record levels of UK employment. With vacancy levels remaining low, the warehouse sector is positively positioned for further rental growth and management are confident in their ability to drive shareholder value.”
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