Warehouse REIT PLC Acquisition of 1 million sq ft portfolio agreed (7655M)
18 Septiembre 2019 - 1:01AM
UK Regulatory
TIDMWHR
RNS Number : 7655M
Warehouse REIT PLC
18 September 2019
18 September 2019
Warehouse REIT plc
(the 'Company' or 'Warehouse REIT')
Warehouse REIT agrees acquisition of 1 million sq ft
portfolio
Warehouse REIT, the AIM-listed specialist warehouse investor,
announces the purchase of an eight asset fully-let portfolio of
reversionary warehouse and distribution assets, from Aviva
Investors, for GBP70 million. Producing an annual rent of GBP5.38
million, the purchase price reflects a net initial yield of just
over 7%. An additional deferred payment of up to GBP5 million is
due on or before September 2023.
The portfolio comprises one multi-let and seven single let
warehouses providing a total floor area of 995,106 sq ft, with
individual units ranging from circa 50,000 to 217,000 sq ft. The
occupiers include the strong covenants of Iron Mountain, Direct
Wines, the Sytner Group and Amazon. The portfolio has a WAULT of
circa 5.3 years and a low average rent of GBP5.40 psf.
All the assets are located close to major UK conurbations and on
or near arterial routes: Reading and Gloucester in the South;
Coventry, Leicester and Nottingham in the Midlands; Grimsby and the
Humber Docks in the North East; and Warrington in the North
West.
The acquisition strengthens the Warehouse REIT portfolio from
both a property and revenue perspective, with over 60% of the
income being produced by assets located in the Midlands and the
South of England. With the purchase of the Amazon Reading
warehouse, this internet retailer becomes the REIT's second largest
tenant accounting for c 4.5% of the total rent. The Gloucester
warehouse, which is let to Direct Wines, the trading name of the
UK's largest home-delivery wine merchant Laithwaites Wine (named
Online Retailer of the Year 2019), will become the Company's third
largest income stream. Both examples clearly reflect the growth of
e-commerce warehousing from superior strength covenants within the
REIT's portfolio. Together with recent lettings, such as the new 10
year lease to Alliance Healthcare at Daneshill in Basingstoke, the
combined overall portfolio WAULT (to expiry) will strengthen to 5.0
years, demonstrating the positive effect of active asset management
and strategic acquisitions.
Following this transaction, the Company has now fully deployed
the GBP120 million of available firepower it had amassed since
undertaking a successful GBP76.5 million capital raise in March
this year, in total acquiring 14 assets at an attractive average
net initial yield of 7.0%.
Andrew Bird of Tilstone commented: "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."
-ENDS-
Enquiries:
Warehouse REIT plc via FTI Consulting
Tilstone Partners Limited +44 (0) 1244 470
Andrew Bird, Paul Makin 090
G10 Capital Limited (part of the Lawson Conner Group),
as AIFM +44 (0) 20 3696
Gerhard Grueter 1302
Peel Hunt (Financial Adviser, Nominated Adviser
and Broker)
Capel Irwin, Carl Gough, Harry Nicholas +44 (0)20 7418 8900
FTI Consulting (Financial PR & IR Adviser to the
Company) +44 (0) 20 3727
Dido Laurimore, Ellie Sweeney, Richard Gotla 1000
Further information on Warehouse REIT is available on its
website:
http://www.warehousereit.co.uk/
Notes to editors:
Warehouse REIT is an AIM listed UK Real Estate Investment Trust
which owns and manages a diversified portfolio of UK warehouse
assets located in urban areas.
Occupier demand for urban warehouse space is increasing as the
structural growth in e-commerce has driven the rise in internet
shopping and investment by retailers in the "last mile" delivery
sector. The urban warehouse sector continues to be projected to be
the best performing of all UK property sectors.
The Company is an alternative investment fund ("AIF") for the
purposes of the AIFM Directive and as such is required to have an
investment manager who is duly authorised to undertake the role of
an alternative investment fund manager. The Investment Manager is
G10 Capital Limited.
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END
ACQEVLBFKKFZBBB
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