Warehouse REIT PLC GBP35m Acquisition in Liverpool (6906O)
11 February 2021 - 6:00PM
UK Regulatory
TIDMWHR
RNS Number : 6906O
Warehouse REIT PLC
11 February 2021
11 February 2021
Warehouse REIT plc
(the 'Company' or 'Warehouse REIT')
WAREHOUSE REIT CONTINUES ACQUISITION PROGRAMME AND GROWS NORTH
WEST EXPOSURE WITH GBP35 MILLION LIVERPOOL TRANSACTION
-400,000 sq ft deal takes total WHR portfolio past eight million
sq ft-
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 four modern warehouse units on
Boulevard Industry Park in Speke, Liverpool, totalling 390,000 sq
ft. The purchase price of GBP35 million reflects a net initial
yield of 5.5%.
Ranging from 74,000 sq ft to 163,000 sq ft, the units are
occupied by three separate occupiers spanning the automotive and
pharmaceutical sectors. The properties generate a net rental income
of GBP2.1 million per annum equating to a low average rent of
GBP5.31 per sq ft and provide a WAULT of over 7 years.
Boulevard Industry Park is one of Liverpool's most successful
and popular business locations, immediately adjacent to Jaguar Land
Rover's 300-acre Halewood manufacturing plant and major Astra
Zeneca and Seqirus facilities. Occupiers benefit from the asset's
prominent location fronting onto Speke Boulevard (A561), the
principle southern gateway into Liverpool City Centre (7 miles to
the north west) which provides easy access onto M57 and M62
motorways, as well as its close proximity to Liverpool's John
Lennon Airport.
The North West is one of the fastest growing regions in the UK,
which is benefitting from a rising population of over seven million
people and continued investment into the region's infrastructure.
Large projects such as Liverpool 2, the new deep-water terminal at
Liverpool Dock, The Mersey Gateway Project between Runcorn and
Widnes and the proposed new Terminal 1 at Manchester Airport are
all expected to drive economic development and increase demand for
industrial space.
On 5 February 2021, Warehouse REIT announced it had successfully
raised GBP45.9 million by way of a placing, to fund a near term
pipeline of acquisitions. Alongside the previously announced GBP14
million acquisition of two distribution warehouses in Harlow, this
transaction substantially deploys the proceeds of the placing and
takes Warehouse REIT's portfolio past eight million sq ft.
Andrew Bird, Managing Director of the Investment Advisor,
Tilstone Partners Limited, commented: "The North West is one of the
UK's most dynamic regions from both a population and employment
perspective, and the significant infrastructure investments made
and ongoing is putting the availability of modern, urban warehouse
space under severe pressure. Despite this, there are a number of
pockets where average rents have yet to catch up with the rest of
the market, and having acquired a number of assets at and since
IPO, the Company now benefits from a strong weighting in the
region.
"This transaction marks significant progress delivering on the
agreed pipeline and we are pleased that the Company has now
deployed the majority of the equity raised at the recent placing.
We are grateful for the support of shareholders and, utilising the
agreed Revolving Credit Facility, the Company has remaining
firepower of c. GBP50 million allowing it to continue to source and
execute on attractive opportunities as it focuses on growing and
diversifying the portfolio, whilst improving both the contracted
income and reversion potential."
-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 is an AIM listed UK Real Estate Investment Trust
that invests in and manages e-commerce urban and 'last-mile'
industrial warehouse assets in strategic locations in the UK.
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, yet supply remains constrained giving rise to rental
growth.
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
currently G10 Capital Limited.
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END
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