Warehouse REIT has acquired a logistics portfolio totalling 570,000 sq ft from Greenstone Property Holdings for £43.6m, while acquiring a stake in the business.
The sale reflects a net initial yield of 6.7% and the portfolio is 90% occupied on leases with a total contracted annual rent of £2.95m.
The portfolio contains five assets: the 220,000 sq ft Gateway Park located adjacent to Birmingham Airport, let to tenants including FedEx; a 50,000 sq ft warehouse in Viables Business Park in Basingstoke, let to golf manufacturer TaylorMade; the 200,000 sq ft Chittening Industrial Estate in Avonmouth let to tenants including DS Smith; a 50,000 sq ft building in Cardiff; and a 54,000 sq ft warehouse in Ebbw Vale let to DHL.
The deal brings the REIT’s portfolio to more than 7.5m sq ft.
As part of the transaction, Warehouse REIT has subscribed circa £32m in cash for shares in Greenstone, which means it has an 80% share in the company.
The funds will be used by Greenstone to repay £31.6m of debt.
Warehouse REIT has entered into a conditional share sale and purchase agreement for the remaining 20% stake in the business, which will be £9m.
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