Warehouse investor progressing with sale of sites in Rugby and Crewe
Property investment business Warehouse REIT has completed £12.8 million of non-core asset sales and says the industrial property market is showing signs of resilience.
The Chester headquartered investor told the stock market this morning that Swift Valley Industrial Estate in Rugby, has been sold for £6.1 million. Overall, sales were achieved 8.1% ahead of March 2024 book value, bringing total disposals for the first nine months of the financial year to £74.4 million, 1.8% ahead of book value.
The UK Real Estate Investment Trust also said it “continues to make good progress” on the sale of Phase 1 of its Radway Green development in Crewe. “Terms are agreed, due diligence is well progressed and a further update will be made in due course,” the company said.
Elsewhere Warehouse REIT has reported a positive quarter of leasing activity for the three months to 31 December 2024. The Company completed 25 transactions, securing £3.5 million of contracted rent and is continuing to successfully capture portfolio reversion, with transactions agreed on average 32.2% ahead of previous contracted rent.
New lettings have seen secured with a European logistics operator at Gateway Park, Birmingham, generating £269,000 of rent, 52.2% ahead of previous rent; and to a specialist supplier of van racking and wrapping services at Oldbury Point, Birmingham, generating £114,000 of rent, 20.0% ahead of prior rent.
A renewal to an international supplier of air break equipment at Gawsworth Court, Warrington, secured £161,500 of rent, 56.5% ahead of previous rent, while a rent review with an international healthcare business at Daneshill Industrial Estate, Basingstoke, secured £1.2 million of rent, 31.9% ahead of previous rent.
Last year Warehouse REIT acquired Phase 2 of Ventura Retail Park, a 13-unit scheme in Tamworth, close to Birmingham, for £38.6 million, representing a net initial yield of 7.4%.
Built in two phases, Ventura is one of the top 20 shopping parks in the UK by sq ft. Phase 2 covers 120,000 sq ft and is fully let to a high-quality occupier line-up including Boots, Sports Direct and H&M. Contracted rent across the scheme is £3.1 million and the WAULT is 6.1 years.
Simon Hope, Warehouse REIT, commented: “Our operational performance continues to demonstrate the quality of our portfolio and our locations, and the resilience of the multi-let industrial market. We have made good progress on our strategic initiatives, with the sale of Radway well advanced and today, we have separately announced a fee amendment to the Investment Management Arrangement which will deliver meaningful cost savings to the Company. Meanwhile, we continue to actively manage our assets to drive rents across our portfolio which was c. 16% reversionary at the half year.”
