Warehouse REIT is looking to raise £100m to pump into a £352m pipeline of diverse acquisitions.
It has proposed a new shares issue, with details to be released later today (5 March).
The REIT will issue around 90m new ordinary shares at 111.5p per share, representing a premium of 6% to the September 2019 NAV and a 1.8% discount to closing value on 4 March.
It said its investment partner, Tilstone Partners, had identified £352m in acquisitions with a target investment yield of 6%.
Some £72m of these are in legals, exclusivity or final negotiations, with a further £280m in detailed negotiations.
Chairman Neil Kirton said: “[The company] has identified new acquisition opportunities, in locations supported by occupational demand, that will further diversify the group’s income and which will strengthen the portfolio’s sustainability, quality and prospects for growth.”
Andrew Bird, managing director of Tilstone Partners, added: “Whilst the sector’s strong prospects continue to attract investment, there remains a diverse pool of motivated sellers driving liquidity, and with capital costs set to remain significantly below replacement costs, we consider this is the right time to be looking at scaling the portfolio in a disciplined manner.”
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