5th Feb 2021 16:08
(Alliance News) - Warehouse REIT PLC on Friday said it raised GBP45.9 million in a share placing.
A total of 37.9 million shares have been placed by Peel Hunt LLP at a price of 121.00 pence each, raising gross proceeds of around GBP45.9 million. The placing shares represent around 9.8% of the company's share capital prior to the placing.
Shares in the real estate investment trust focused on warehouse assets were trading 2.0% lower at 123.50 pence each on Friday afternoon in London, giving it a market capitalisation of GBP477.9 million.
Warehouse REIT, announcing the placing plans earlier on Friday, said the new cash will be used to fund the GBP13.9 million purchase of two distribution warehouses in Harlow totalling 177,000 square feet - with a net initial yield of 8.6% - as well as two other multi-let warehouse estates worth a total of GBP43.5 million, reflecting a blended net initial yield of 5.6%. The combined GBP57.4 million cost of the three transactions give a blended net initial yield of 6.3%, it added.
It highlighted investors participating in the placing will be eligible to receive the third quarterly dividend of 1.55p per share.
The Exeter-based company also said it has a pipeline of further near-term acquisition opportunities worth GBP263.3 million to give a blended net initial yield of 5.9% when combined with the above acquisitions.
Turning to current trading, Warehouse REIT noted that for its financial year ending March 31, it has now received 96% of rents due, with the amount expected to increase further over the current quarter.
Separately, it said it has started the process of applying to the UK Financial Conduct Authority for its shares to be admitted to trading on the main market of the London Stock Exchange. It hopes to conclude the process before September.
By Ife Taiwo; [email protected]; Updated by Lucy Heming; [email protected]
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