The newly launched Warehouse REIT has met its IPO target of £150m after its launch in August.
Net proceeds are £146.8m, which it will invest into a diversified portfolio of UK warehouse assets located in urban areas, and the Tilstone Property Portfolio, which it will buy for £108.9m. The 27-asset portfolio has a 7% net initial yield and is let to 129 tenants.
The investment manager is currently G10 Capital, but this will pass to Tilstone Partners on receipt of FCA approval. The TPL management team are retaining £16m of equity in Warehouse REIT.
It is targeting a yield and dividend yield of 5.5% and it said it has already identified and entered into negotiations with a number of other vendors for assets valued at £88m.
The REIT is one of only two commercial property focused REITs to launch in 2017 that has met its listing target.
Neil Kirton, non-executive chairman of Warehouse REIT, said: “The company’s strategy has clearly appealed to a wide variety of investors as we have seen strong take-up from pension fund managers, wealth managers, specialist real estate investors and retail investors, resulting in a broad shareholder register from the outset from which to grow the Warehouse REIT.
“With a focus on the urban warehouse market, the company provides investors with exposure to one of the best performing real estate asset classes which is underpinned by compelling structural drivers to support future outperformance.”
Peel Hunt is acting as adviser and broker to the company.
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