Le mie ricette per la real estate communityWarehouse REIT, the AIM-listed company that invests in e-commerce urban and last-mile industrial warehouse assets in the UK, announces that it is to acquire a portfolio of five single-let and multi-let warehouse assets located across the UK (the “Portfolio”), totalling 570,000 sq ft (the “Transaction”), owned by Greenstone Property Holdings Limited (“Greenstone”). The purchase price of £43.6 million reflects an attractive blended net initial yield of 6.7% and provides a combined WAULT of 5.5 years.
Located in established logistics markets, the portfolio is 90 per cent occupied on leases with a total contracted annual rent of £2.95 million. The Portfolio has been independently valued by CBRE as at 29 September 2020 at £44.55 million in aggregate. The individual assets are:
- Gateway Park, which accounts for 56% of the portfolio by value, is a 28-unit industrial estate totalling 220,000 sq ft adjacent to Birmingham Airport and less than two miles from Junction 6 of the M42, a key arterial route in the Midlands. The park generates £1.3 million per annum of contracted rent and is let to a high-quality tenant mix including global 3PL FedEx, pan-European freight distributor Circle Express and Swissport cargo services.
- A 50,000 sq ft unit on Viables Business Park in Basingstoke, occupied on a lease expiring in 2026 by global golf manufacturer TaylorMade and serving as its European headquarters, guaranteed by Adidas. The property is let off a low passing rent of £422,000, reflecting sub £9 psf and is ideally located less than five minutes’ drive from the town centre, whilst Junction 6 of the M3, which connects London and the South of England, is just 2.5 miles east of the park.
- Chittening Industrial Estate in Avonmouth, outside of Bristol and within one mile of the new M49 motorway junction, is a 200,000 sq ft, 10-unit scheme generating £545,000 per annum of contracted rent. It is 88% let to a diverse range of tenants including Palletways UK, Encon Insulation and DS Smith.
- A three-unit warehouse property on Newport Road, Cardiff, totalling 50,000 sq ft. The asset generates £519,000 per annum of topped up rent.
- A 54,000 sq ft warehouse in Ebbw Vale, South Wales, leased to global 3PL DHL, on an eight-year term off a low rent reflecting just £3 psf.
These latest additions continue the deployment of July’s £153 million equity raise and take Warehouse REIT’s portfolio to over seven and a half million sq ft, providing multiple opportunities for value creation through asset management, whilst further improving cost ratio efficiencies.
Pic : Gateway Park
Source : Company