A UK-based specialist warehouse investor, Warehouse Real Estate Investment Trust (REIT), announces the purchase of an eight asset (fully-let) portfolio of warehouse and distribution units from Aviva Investors in a deal worth £70 million.
The portfolio – which produces an annual rent of £5.38m- comprises of one multi-let and seven single let warehouses, providing a total floor area of just under 1 million sq ft.
Andrew Bird of Tilstone commented: “This is a highly attractive portfolio with 100% of income secured against D&B rated “minimum risk” covenants. The reversionary nature of the portfolio sits within some short leases and some below-market rents; however, the quality of the assets and the strength of their locations give us confidence that we will be able to unlock value through active management.
“This transaction means that the Company has now acquired 14 assets within six months, fully deploying the proceeds of our most recent fundraise. We are pleased that the Company has utilised shareholders’ funds quickly but prudently and are excited about the quality of those assets that the Company has purchased, which we expect will deliver good operational performance. We continue to see attractive acquisition opportunities underpinned by solid occupation demand and remain focussed on the continued management of the Company’s portfolio to drive future shareholder returns.”
The acquisition – which also includes the purchase of Amazon’s Reading warehouse, gives Warehouse REIT 60% of the asset produced income from the Midlands and South of England.
Current occupiers fo the portfolio include Amazon, Direct Wines (Laithwaites Wine), car dealership Sytner Group, and international enterprise data & records management company Iron Mountain.