Warehouse REIT PLC Two acquisitions in Chorley and Doncaster (7555F)
17 July 2019 - 4:00PM
UK Regulatory
TIDMWHR
RNS Number : 7555F
Warehouse REIT PLC
17 July 2019
17 July 2019
Warehouse REIT plc
(the 'Company' or 'Warehouse REIT')
Warehouse REIT enhances portfolio with two new acquisitions
Warehouse REIT, the AIM-listed specialist warehouse investor,
announces the completion of two new acquisitions as it continues to
grow its portfolio of high quality urban warehouse assets,
following the successful capital raise in April creating over
GBP120m of acquisition firepower.
The acquisitions comprise a warehouse property in Chorley,
Lancashire for GBP3.60 million and an industrial warehouse premises
in Doncaster, South Yorkshire for GBP1.68 million, extending the
Company's current holding at the same estate. The two separate
transactions are in line with Warehouse REIT's strategy of
acquiring well specified warehouses close to conurbations, arterial
routes or transport hubs, with the combined acquisition prices
reflecting a blended net initial yield of 6.8%.
The Lancashire asset is the larger of the two acquisitions at
47,500 sq ft. The modern purpose built warehouse unit at Eaton
Point is in the well-established distribution location of Chorley
being just one mile from the M6 and 27 miles north west of
Manchester, with numerous national warehouse occupiers operating in
its immediate vicinity, such as Waitrose. The property, which has
recently undergone a complete refurbishment, is let to an
established manufacturing business as their distribution centre,
generating a net passing rent of just over GBP260,000 per annum and
has 4.5 years remaining on the lease.
In its second acquisition, the Company has purchased Units 1
& 2 of the Delta Court estate within the Sky Business Park in
Doncaster. This transaction increases Warehouse REIT's holding on
the popular estate, where it already owns 36,000 sqft across 6
units and has enjoyed strong performance to date. The asset
comprises over 20,656 sq ft of modern industrial warehouse space
with roller access doors, two-storeys internal offices and generous
parking provisions. The acquisition formed a sale and leaseback
with a sign production company on a new 10 year lease with a break
at year 5, off a low passing rent of GBP5.81 psf, which compares
favourably to lettings that the Company has recently achieved on
the estate. Sky Business Park is situated with easy access to the
M18 motorway and adjacent to Doncaster Sheffield Airport where
cargo throughput tonnage increased by 42% last year, reflecting the
growth of Doncaster as an important UK distribution hub.
Andrew Bird of Tilstone commented: "These latest transactions
demonstrate our market-leading origination capabilities, as we
remain wholly focused on both growing and continuously enhancing
the Company's portfolio of high quality urban warehouse assets.
"The two acquisitions extend the efficient deployment of funds
following the recent fundraising whilst providing the Company with
increased exposure to the north of England's strongly performing
warehouse market, which continues to see good levels of both
investor and tenant demand. We look forward to integrating these
assets into the Company's wider portfolio while we continue to
source new opportunities, at both an investment and asset
management level, in order to maximise the income returns the
Company delivers for shareholders."
-ENDS-
Enquiries:
Warehouse REIT plc via FTI Consulting
Tilstone Partners Limited +44 (0) 1244 470
Andrew Bird, Paul Makin 090
G10 Capital Limited (part of the Lawson Conner Group),
as AIFM +44 (0) 20 3696
Gerhard Grueter 1302
Peel Hunt (Financial Adviser, Nominated Adviser
and Broker)
Capel Irwin, Carl Gough, Harry Nicholas +44 (0)20 7418 8900
FTI Consulting (Financial PR & IR Adviser to the
Company) +44 (0) 20 3727
Dido Laurimore, Ellie Sweeney, Richard Gotla 1000
Further information on Warehouse REIT is available on its
website:
http://www.warehousereit.co.uk/
Notes to editors:
Warehouse REIT is an AIM listed UK Real Estate Investment Trust
which owns and manages a diversified portfolio of UK warehouse
assets located in urban areas.
Occupier demand for urban warehouse space is increasing as the
structural growth in e-commerce has driven the rise in internet
shopping and investment by retailers in the "last mile" delivery
sector. The urban warehouse sector continues to be projected to be
the best performing of of all UK property sectors.
The Company is an alternative investment fund ("AIF") for the
purposes of the AIFM Directive and as such is required to have an
investment manager who is duly authorised to undertake the role of
an alternative investment fund manager. The Investment Manager is
G10 Capital Limited.
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END
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