Warehouse REIT PLC Acquisition of two warehouses for GBP14m (0853O)
05 February 2021 - 6:00PM
UK Regulatory
TIDMWHR
RNS Number : 0853O
Warehouse REIT PLC
05 February 2021
5 February 2021
Warehouse REIT plc
(the 'Company' or 'Warehouse REIT')
WAREHOUSE REIT ACQUIRES TWO SOUTH EAST DISTRIBUTION WAREHOUSES
FOR GBP14M
Warehouse REIT, the AIM-listed company that invests in
e-commerce urban and last-mile industrial warehouse assets in the
UK, announces the acquisition of two adjacent distribution
warehouses in Harlow, totalling 177,000 sq ft, for GBP13.9 million
including costs. The purchase price reflects a net initial yield of
8.6%.
Situated in the heart of the established Templefields industrial
area, Harlow's premier industrial and distribution location, the
property comprises two modern units of 115,000 sq ft and 62,000 sq
ft respectively. It generates GBP1.2 million of contracted rent per
annum which equates to a low passing rent of GBP6.72 psf, offering
significant potential for rental growth. The larger unit is let to
the UK subsidiary of a global beauty & cosmetics company, with
over four years remaining on the lease, and reflecting the
strategic location, serves as its primary UK distribution hub. The
second unit is occupied by a specialist in shop fittings and
supplies, currently assisting retailers with H&S and PPE, on a
short term lease.
Harlow is an established commercial centre in the South East,
located in the north east quadrant of London's Orbital M25 motorway
and 30 miles (45 km) north of Central London. It forms part of the
London commuter belt, with approximately 200,000 people living
within a 6 mile (10 km) radius. It benefits from excellent arterial
connectivity, 4 miles (6 km) from Junction 7 of the M11 and 8 miles
(13 km) from Junction 27 of the M25.
The South East industrial market continues to be characterised
by strong take up with a number of major international and national
retailers, 3PLs and manufacturers basing their national
distribution operations in the region in order to benefit from the
proximity to London, the South East and the Midlands. Harlow is
especially attractive to occupiers due to a combination of readily
available labour at comparably lower rates and discounted rental
levels versus other M25 orbital locations.
Andrew Bird, Managing Director of the Investment Advisor,
Tilstone Partners Limited, commented: "Harlow is a highly sought
after and fast growing South East industrial location offering
access to a significant portion of the UK population in a
relatively short drive time. These acquisitions fit with the
Company's strategy of acquiring a mix of strong day one income,
near term lease events allowing us to capture the reversion as well
as longer term asset management opportunities.
"Despite increasing investor appetite for industrial exposure,
the strength of our UK wide origination capability means we are
constantly screening new opportunities. Advanced due diligence and
negotiations are underway on several assets that meet Warehouse
REIT's investment criteria, at both an individual asset and
portfolio level."
-ENDS-
Enquiries: via FTI Consulting
Warehouse REIT plc
Tilstone Partners Limited +44 (0) 1244 470
Andrew Bird, Paul Makin, Peter Greenslade 090
FTI Consulting (Financial PR & IR Adviser to the
Company) +44 (0) 20 3727
Dido Laurimore, Richard Gotla, Ellie Perham-Marchant 1000
G10 Capital Limited (part of the IQEQ Group), AIFM +44 (0) 20 3696
Maria Glew 1302
Peel Hunt (Financial Adviser, Nominated Adviser and
Broker) +44 (0)20 7418
Capel Irwin, Carl Gough, Harry Nicholas 8900
Further information on Warehouse REIT is available on its
website:
http://www.warehousereit.co.uk
Notes to editors:
Warehouse REIT plc invests in and manages urban and 'last-mile'
industrial warehouse assets that support the continued growth in
e-commerce.
Our purpose is to own and manage warehouses in economically
vibrant urban areas across the UK, providing the space our
occupiers need for their businesses to thrive.
As we grow, our vision is to become the UK's warehouse provider
of choice.
The Company's shares were admitted to trading on AIM in
2017.
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END
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