Warehouse REIT has signed a deal with Panattoni to bring forward 2m sq ft in Crewe.
The news comes as the REIT’s latest results show it has topped £1bn after a “record year”, and plans to move on to the main market of the LSE.
Under the terms of the agreement, Panattoni will be responsible for delivering the Radway Green scheme, with Warehouse REIT funding and retaining the completed development.
Since 2017, Warehouse REIT has assembled a 102-acre site in the North West logistics hub, located less than 1.5 miles from J16 of the M6 motorway. In 2021, the company announced it had secured planning consent, in collaboration with the adjoining landowner, for 803,000 sq ft of modern warehouse space across six new high-bay units, ranging from 22,000 sq ft to 340,000 sq ft. A planning application has been submitted for a further 1m sq ft of warehousing.
Andrew Bird, chief executive of Tilstone Partners, which manages advisory services to the REIT, said: “This is another significant milestone for Warehouse REIT as we accelerate our ‘lazy acres’ strategy, at what has the potential to be the premier logistics hub in the North West.
“Working alongside a like-minded and globally renowned partner in Panattoni significantly de-risks the scheme and allows us to leverage its global logistics development expertise, enabling Warehouse REIT to benefit from Panattoni’s strong occupier and contractor relationships. The logistics market dynamics in the North West remain highly compelling: supply has fallen by 37% in the past 12 months, underpinning strong rental growth forecasts.”
The REIT’s portfolio rose over the 12-month period to the end of March from £792m to £1.01bn, boosted by a like-for-like valuation uplift of 19.4%.
Chair Neil Kirton said: “This has been another good year for the group. The successful execution of our strategy since IPO has generated significant value for shareholders, as our high-quality portfolio has benefited from the consistent rerating of the asset class.”
During the period it bought six investment assets totalling 176,500 sq ft for £43m, along with adjacent development land in Cambridge and Crewe. Kirton said the REIT saw “further upside” from the development potential of the land within the portfolio. It also committed to a £35m forward-funding deal.
Kirton added: “The company’s move to the main market will make the shares available to a wider range of investors and increase their liquidity. In turn, this will help us to continue to deliver our strategy and create further value for all our stakeholders.”
Income from property, excluding valuation gains, rose from £35.8m to £48.7m.
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