17th Feb 2020 13:44
(Alliance News) - Warehouse REIT PLC on Monday said it is mulling a capital raising to allow further acquisitions, with a pipeline worth over GBP350 million lined up.
The industrial assets investor said its investment advisor is in "exclusive or final" talks for GBP72 million worth of assets. A further GBP280 million worth are under "detailed" negotiations.
Purchasing these assets, London-headquartered Warehouse REIT said, would diversify its income streams and enhance shareholder returns.
"With limited capital resources available to complete acquisitions, the company is contemplating an equity fundraising to benefit from this pipeline of near term opportunities, which it will seek to deploy, together with debt finance where appropriate, in line with its investment strategy," said Warehouse REIT.
"Any such fundraising is expected to follow the publication of a prospectus and further details will follow in due course."
Looking at current assets, Warehouse REIT in the period from October 1 to January 31 completed 28 new lettings and 28 new lease renewals, generating GBP1.2 million per year of contracted rent.
Occupancy at the end of January was 92.7%, improved from the 91.5% achieved at the end of September.
Shares in the company were 1.9% lower on Monday afternoon in London at 115.76 pence each.
By George Collard; [email protected]
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