Disposals

RNS Number : 0638C

Warehouse REIT PLC

27 September 2018

 

27 September 2018

Warehouse REIT plc

(the 'Company' or 'Warehouse REIT')

Disposals

Warehouse REIT, the AIM listed specialist warehouse investor, announces that it has completed the sale of a 30,000 sq ft multi-let industrial estate at Stukeley Meadows, in Huntingdon, for £3.25 million, reflecting a net initial yield of 5.4% and a 16% premium to the March 2018 book value. In addition, as announced on 19 September, it has completed the sale of Warwick House, in Solihull, for £2.9 million, reflecting a 12% premium to the March 2018 book value.

In the short term, the sale proceeds will be utilised to reduce the RCF element of the Company's bank facility prior to any redeployment.  Subsequent to the recent property disposals, the LTV, based on the 31 March 2018 valuation, has fallen to 38%.

At Stukeley Meadows, the Company recently completed an 8,944 sq ft lease renewal to Howdens Joinery.  The letting generates an annual income of £62,700, 7.5% ahead of the March 2018 ERV and 16.7% ahead of the previous passing rent of £53,750 p.a.  The sale continues the Company's strategy to dispose of more mature assets at a favourable initial yield and redeploy the proceeds into opportunities that will generate additional, longer term income and higher total returns.

Andrew Bird, Managing Director of Tilstone Partners Ltd, the manager of Warehouse REIT, commented: "This activity further demonstrates our asset management team's ability to undertake significant value enhancing activity across the portfolio, before recycling some of the more mature assets ahead of book value. At the same time, it reduces our LTV to below 40%, a key milestone set out at the recent year end."

-ENDS-

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, Carl Gough, Harry Nicholas	[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.warehousereit.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.  As at 31^st March 2018 the Warehouse REIT has fully invested the IPO proceeds with the entire portfolio valued at £291m. 

Occupier demand for urban warehouse space remains strong as the structural change in the retail sector reduces the demand for high street stores in favour of the continuing growth in e-commerce and investment by retailers in the associated "last mile" delivery sector.

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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