Property investor sets £3.7m deal in Stone

Property investor Warehouse REIT has agreed a £3.7m deal for four units at Stone Business Park.

The sites, which total 57,500 sq ft of space, have been bought from a private investor. The deal reflects a yield of 7.3%, although fixed uplifts in one of the leases will increase the passing rent by 16% over the next four years.

The units are close to the A34 in Staffordshire and are home to e-commerce packager Woolcool and utility provider Capula.

The specialist warehouse investor has also bought a site in Carlisle and completed a purchase in Banbury, Oxfordshire.

Warehouse REIT has secured new and enlarged financing facilities totalling £65m with HSBC which it will use to fund pipeline acquisitions, primarily in the tier 3 warehouse sector.

Neil Kirton, non-executive chairman of Warehouse REIT, said: “These new acquisitions fit with our investment strategy of acquiring assets that are either located in urban areas or on infrastructure links, and whilst they  already offer a good income return they also present opportunities to leverage our asset managers’ expertise to drive further value over the longer term.”