Warehouse investor buys £70m portfolio

Warehouse REIT, the AIM-listed specialist warehouse investor, has bought an eight-asset portfolio of assets across England, including one in Coventry, in a deal worth £70m.

The acquisition, from Aviva Investors, comprises one multi-let and seven single let warehouses providing a total floor area of 995,106 sq ft, with individual units ranging from around 50,000 to 217,000 sq ft.

The occupiers include Iron Mountain, Direct Wines, the Sytner Group and Amazon.

All the assets are located close to major UK conurbations and on or near arterial routes: Reading and Gloucester; Coventry, Leicester and Nottingham, Grimsby and the Humber Docks; and Warrington.

Andrew Bird of Tilstone said: “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.”

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