Property firm offloads two warehouses for total consideration of £13.4m
Warehouse REIT, a specialist warehouse investor, has sold two assets, including one in West Yorkshire.
The multi-let industrial warehouse investor has sold the two sites in Halifax and Warrington for a total consideration of £13.4m.
The combined price is 3.7% ahead of the September 2023 book value and reflects an average net initial yield of 5.3%.
The sales were Warrington South Industrial Estate, a 106,000 sq ft single-let asset acquired in 2019, where Warehouse REIT delivered a 10-year lease renewal in 2020 which sold for a total consideration £11.6m, and Pellon Lane, a 20,000 sq ft multi-let asset in Halifax which was acquired in 2017, where the company has successfully secured new lettings or renewals on nearly all the available space since acquisition. It sold for £1.8m.
These transactions bring total sales since April 1, 2023 to £53m, demonstrating good progress against our commitment to continued capital recycling. Proceeds from the sales will be used to pay down debt, supporting future earnings.
Simon Hope, for Warehouse REIT said: “Strengthening our balance sheet and earnings position by releasing capital from assets which are low yielding or where we have successfully executed our business plan is a key priority for us.
“As these disposals show, we continue to evaluate all opportunities to do that.
“While the investment market remains subdued, we have sold into pockets of demand, above book value, enabling us to crystallise value for shareholders and increase the portfolio weighting to multi-let assets where we see the most attractive opportunities.”