17th Jul 2019 12:10
(Alliance News) - Warehouse REIT PLC said Wednesday it has acquired two UK urban warehouse assets for GBP5.3 million in total, the combined acquisition prices reflecting a net initial yield of 6.8%.
The first acquisition is of a 47,500 square feet warehouse property in Chorley, Lancashire for GBP3.6 million.
The Lancashire property was recently refurbished, and is currently let to an unnamed manufacturing business as a distribution centre. The asset generates a net passing rent of GBP260,000 per annum and has 4.5 years remaining on lease.
The second acquisition is for units one and two of the Delta Court estate in the Sky Business Park in Doncaster.
The two units comprises 20,656 square feet of warehouse space, including internal offices and parking provisions, and increases Warehouse REIT's holding on the estate to eight units covering around 56,656 square feet.
The acquisition formed a sale and leaseback with an unnamed sign production company on a new ten-year lease at a low passing rent of GBP5.81 per square foot.
"These latest transactions demonstrate our market-leading origination capabilities, as we remain wholly focused on both growing and continuously enhancing the company's portfolio of high quality urban warehouse assets," said Andrew Bird, from investment manager Tilstone.
"The two acquisitions extend the efficient deployment of funds following the recent fundraising whilst providing the company with increased exposure to the north of England's strongly performing warehouse market, which continues to see good levels of both investor and tenant demand," Bird added.
Shares in the warehouse property investor were up 1.0% at 102.0 pence on Wednesday.
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