Warehouse investor spends £5.2m to bag two more sites
Warehouse REIT, a listed specialist warehouse investor, has announced two new acquisitions following a successful capital raise in April when it accumulated more than £120m.
The latest purchases include industrial warehouse premises in Doncaster worth £1.68m, as well as a warehouse property in Chorley, Lancashire, for £3.6m.
The business said the combined acquisition prices reflecting a blended net initial yield of 6.8%.
For its South Yorkshire investment, the company has bought Units 1 and 2 of the Delta Court estate within the Sky Business Park, Doncaster.
The transaction increases Warehouse REIT’s holding on the estate, where it already owns 36,000 sq ft across six units and has enjoyed strong performance to date.
The newest asset comprises over 20,656 sq ft of modern industrial warehouse space with roller access doors, two-storey internal offices and generous parking.
The acquisition formed a sale and leaseback with a sign production company on a new 10-year lease with a break at year five, off a passing rent of £5.81 per square foot.
The Lancashire asset is the larger of the acquisitions at 47,500 sq ft. The modern, purpose-built warehouse unit at Eaton Point has recently undergone a complete refurbishment. It is let to an established manufacturing business as its distribution centre, generating a net passing rent of just over £260,000 per annum and has 4.5 years remaining on the lease.
Andrew Bird, of Tilstone Partners, said: “These latest transactions demonstrate our market-leading origination capabilities, as we remain wholly focused on both growing and continuously enhancing the company’s portfolio of high quality urban warehouse assets.
“The two acquisitions extend the efficient deployment of funds following the recent fundraising, whilst providing the company with increased exposure to the north of England’s strongly performing warehouse market, which continues to see good levels of both investor and tenant demand.
“We look forward to integrating these assets into the company’s wider portfolio while we continue to source new opportunities, at both an investment and asset management level, in order to maximise the income returns the company delivers for shareholders.”
