Acquisition of four industrial estates for £26m

RNS Number : 6392R

Warehouse REIT PLC

25 September 2017

 

25 September 2017

Warehouse REIT plc

(the 'Company' or 'Warehouse REIT')

Warehouse REIT Exchanges on £26m Pipeline Acquisitions

Following the successful £150 million fundraise and subsequent admission to AIM on Wednesday 20 September 2017, the Board of Warehouse REIT plc (ticker: WHR), the specialist warehouse investor, is pleased to announce its first pipeline acquisitions, which follows the initial Tilstone Portfolio purchase for £108.85 million. 

The pipeline assets described in the Company's prospectus included four multi-let industrial estates in England which were at an advanced stage of negotiations.  Contracts have now been exchanged with Hansteen Holdings plc to acquire these assets for a total consideration of £26.25 million plus costs, reflecting a net initial yield of 7.5%.  Two of the estates are located in the North West, one in the Midlands and one in the South East, are all either in urban areas or on strategic infrastructure links and their purchase is in line with the REIT's investment strategy.  The estates cover a total floor area of 603,000 sq ft and generate an annual net rent of £2.11 million.  With an average passing rent equating to £3.50 psf, the Company believes there is potential for long term rental growth.

Commenting on the transaction, Neil Kirton, Non-Executive Chairman of Warehouse REIT, said: 

"This transaction is firmly in line with our investment strategy set out at the time of the IPO, for good quality, well located assets with plenty of opportunities to enhance value through asset management.  Whilst the vendor has run a successful letting campaign with voids down to 9% of ERV, this reflects slightly more than the national average which is characterised by a shortage of well-located warehouse stock, driven by the structural shifts taking place in last mile delivery.  The Tilstone management team believe that the assets offer potential for further rental growth."

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Enquiries:

Warehouse REIT plc                                                                                                       via FTI Consulting

Tilstone Partners Limited Andrew Bird, Paul Makin	[phone]
G10 Capital Limited (part of the Lawson Conner Group), acting as AIFM Agnese Soldane, Gerhard Grueter	[phone]
Peel Hunt (Financial Adviser, Nominated Adviser and Broker) Capel Irwin, Edward Fox	[phone]
FTI Consulting (Financial PR & IR Adviser to the Company) Dido Laurimore, Ellie Sweeney, Richard Gotla	[phone]

Further information on Warehouse REIT is available on its website:

http://www.warehousereitplc.co.uk

Notes to editors:             

Warehouse REIT announced the results of its IPO on 15 September, having raised gross proceeds of £150 million (£146.8 million net) to invest in 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 offers one of, if not the highest, initial yield 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 currently G10 Capital Limited, whose role will pass to Tilstone Partners Limited ("TPL"), on receipt of FCA approval. 

 

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