Warehouse REIT buys four industrial estates from Hansteen – Warehouse REIT says that, following its admission to AIM on Wednesday 20 September 2017, the board has announced its first pipeline acquisitions, which follows the initial Tilstone Portfolio purchase for GBP108.85 million.
The pipeline assets described in the prospectus included four multi-let industrial estates in England which were at an advanced stage of negotiations. Contracts have now been exchanged with Hansteen Holdings plc to acquire these assets for a total consideration of GBP26.25 million plus costs, reflecting a net initial yield of 7.5%. Two of the estates are located in the North West, one in the Midlands and one in the South East, are all either in urban areas or on strategic infrastructure links and their purchase is in line with the REIT’s investment strategy. The estates cover a total floor area of 603,000 sq ft and generate an annual net rent of GBP2.11 million. With an average passing rent equating to GBP3.50 psf, the Company believes there is potential for long term rental growth.
Commenting on the transaction, Neil Kirton, Non-Executive Chairman of Warehouse REIT, said: “This transaction is firmly in line with our investment strategy set out at the time of the IPO, for good quality, well located assets with plenty of opportunities to enhance value through asset management. Whilst the vendor has run a successful letting campaign with voids down to 9% of ERV, this reflects slightly more than the national average which is characterised by a shortage of well-located warehouse stock, driven by the structural shifts taking place in last mile delivery. The Tilstone management team believe that the assets offer potential for further rental growth.”
WHR / HSTN : Warehouse REIT buys four industrial estates from Hansteen