Warehouse REIT, the e-commerce and industrial warehouse-focused real estate investment trust, has today announced that it had acquired a collection of five single-let and multi-let warehouse assets across the UK.
Totalling 570,000 sq ft; the warehouses were owned by Greenstone Property Holdings Limited and were bought for a total of £43.6 million – reflecting a net initial yield of 6.7%.
The new warehouses are as follows:
· Gateway Park, Birmingham – Totalling 220,000 sq ft; the 28-unit industrial estate accounts for 56% of the new portfolio’s value. The park generates £1.3 million per annum of contracted rent and is currently let to a high-quality tenant mix including global 3PL FedEx, pan-European freight distributor Circle Express and Swissport cargo services.
· Viables Business Park, Basingstoke – This warehouse is occupied on a lease expiring in 2026 by global golf manufacturer TaylorMade and serving as its European headquarters, guaranteed by Adidas. The property is let off a passing rent of £422,000 and is located less than five minutes’ drive from Basingstoke town centre.
· Chittening Industrial Estate, Avonmouth – , This 200,000 sq ft, 10-unit scheme is located just outside of Bristol and generates £545,000 rent per annum.
· A three-unit warehouse property in Newport Road, Cardiff – Totalling 50,000 sq ft, this multi-unit asset generates £519,000 rent per annum.
· Single warehouse in Ebbw Vale, South Wales This 54,000 sq ft warehouse is leased to global 3PL DHL, on an eight-year term.
The new acquisitions brings Warehouse REIT’s overall portfolio to over 7.5 million sq ft.
Andrew Bird, Managing Director of the Investment Advisor, Tilstone Partners Limited, commented: “This is an increasingly rare opportunity to acquire an immediately accretive and diverse portfolio of
assets which fits with our stated investment strategy, whilst offering both short and longer-term asset management opportunities through a mixture of vacancy and short income.
“Despite strong competition for industrial assets, as an increasingly diverse range of occupiers seek to ensure their businesses are fit for purpose as e-commerce penetration accelerates, we continue to originate and successfully execute on attractive transactions. The focus remains on deploying the balance of the equity from July’s capital raise, leveraging our local market relationships to secure off market opportunities, in order to further improve the portfolio metrics and generate shareholder outperformance.”