Warehouse REIT PLC TWO LOGISTICS ACQUISITIONS FOR GBP82 MILLION (9221X)
03 Septiembre 2020 - 1:00AM
UK Regulatory
TIDMWHR
RNS Number : 9221X
Warehouse REIT PLC
03 September 2020
3 September 2020
Warehouse REIT plc
(the 'Company' or 'Warehouse REIT')
WAREHOUSE REIT INCREASES E-COMMERCE EXPOSURE WITH TWO LOGISTICS
ACQUISITIONS FOR GBP82 MILLION
- Separate transactions, totalling 875,000 sq ft; good progress
being made investing funds from recent fundraise -
Warehouse REIT, the AIM-listed company that invests in
e-commerce urban and last-mile industrial warehouse assets in the
UK, announces that it has completed the acquisition of two
single-let warehouse assets located in the East Midlands and
Cheshire, occupied by Amazon and Wincanton respectively. The assets
have been purchased in two separate transactions for a total
consideration of GBP82 million, reflecting a blended net initial
yield of 5.4% and provide a combined WAULT of 9 years. These latest
additions to the Company's portfolio follow its successful equity
raise that completed last month, delivering equity of circa GBP153
million and over GBP200 million of investment firepower.
The East Midlands property is strategically located just off the
M1 motorway, the key logistics spine of the UK, outside the town of
Chesterfield. The prime 500,000 sq ft fulfilment centre is let to
Amazon UK on a full repairing and insuring lease with over 13 years
remaining, benefitting from five-yearly upward only rent reviews
with no breaks. The Company has acquired the asset for cash
consideration of GBP57 million from Tritax Big Box REIT plc and
when combined with the other Amazon-occupied properties in
Warehouse REIT's portfolio, at just over GBP4m rent per annum as a
result of this acquisition, the e-commerce giant is now the largest
tenant on the Company's rent roll.
The second acquisition comprises a 374,000 sq ft single-let
warehouse located adjacent to the 29 acre multi-let estate at
Midpoint 18 in Middlewich, Cheshire, which was acquired by the
Company last year and increases Warehouse REIT's total holding at
this location to over 550,000 sq ft. The asset, acquired for cash
consideration of GBP25 million, is occupied by Wincanton Holdings
Limited, the UK's largest third party logistics operator, and has
3.5 years remaining on its lease off a low passing rent of cGBP5
psf, which compares favourably to lettings that the Company has
recently achieved on the wider estate. New-build development
activity locally reinforces the strength of the Midpoint Estate's
distribution location, which sits within two miles of Junction 18
of the M6 motorway and approximately 26 miles south of
Manchester.
Andrew Bird, Managing Director of the Investment Advisor,
Tilstone Partners Limited, commented: "Following the successful
equity raise completed in July, it is pleasing to be able to
deliver these high quality acquisitions, which show good progress
with Warehouse REIT deploying the proceeds raised into high quality
e-commerce focussed assets, both identified as part of the
fundraise pipeline. The properties make a significant contribution
to enhancing the overall portfolio quality and with the continued
acceleration of the global ecommerce market, we are pleased that
Amazon becomes the REIT's largest tenant. The Cheshire asset
provides both short and longer-term value-enhancing asset
management opportunities and increases our footprint in what has
proved itself to be a prime North West logistics location.
"We look forward to integrating these assets into the wider
portfolio, while we continue to work through our pipeline of
identified opportunities for the REIT to deploy the remaining
proceeds from the recent equity raise ahead of schedule and allow
the targeted scale to be achieved, whilst driving shareholder
returns."
-ENDS-
Enquiries: via FTI Consulting
Warehouse REIT plc
Tilstone Partners Limited +44 (0) 1244 470
Andrew Bird, Paul Makin 090
FTI Consulting (Financial PR & IR Adviser
to the Company) +44 (0) 20 3727
Dido Laurimore, Ellie Sweeney, Richard Gotla 1000
G10 Capital Limited (part of the IQEQ Group),
AIFM
Maria Glew +44 (0) 20 3696
1302
Peel Hunt (Financial Adviser, Nominated Adviser
and Broker)
Capel Irwin, Carl Gough, Harry Nicholas +44 (0)20 7418 8900
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
that invests in and manages e-commerce urban and 'last-mile'
industrial warehouse assets in strategic locations in the UK.
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, yet supply remains constrained giving rise to rental
growth.
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
currently G10 Capital Limited.
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END
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