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(Alliance News) - Warehouse REIT PLC on Wednesday said it completed major lettings totalling 205,000 square feet at 24% ahead of estimated recovery values.
The industrial-focused real estate investment trust said the two long-term lettings in Plymouth and Coventry will generate over GBP1 million of annual contracted rent.
Warehouse REIT said it let its 140,000 sq ft building in Coventry to Evtec Aluminium Ltd, an automotive component manufacturer, at a rent representing a 17 % uplift from estimated rental values on March 31 ERV, and a 26% uplift on the previous passing rent.
The firm added the 10-year lease with no break will produce contracted rent of GBP623,000 per annum.
In a second transaction, Warehouse REIT completed a 66,000 square feet lettings to Hermes Parcelnet Ltd at its central Plymouth warehouse. The new 10-year lease will be at an annual rent of GBP460,000, reflecting an uplift of 36% on the previous passing rent.
Warehouse REIT Investment Adviser Paul Makin said: "With strong ongoing demand for modern warehouse space in well-connected urban locations across the UK, we continue to capture the portfolio's significant reversionary potential. The Coventry transaction is another significant letting to complete in the West Midlands this year and reflects the region's chronic undersupply of ready-to-occupy warehousing.
"At the company's Plymouth asset, our highly experienced team has delivered a modern specification warehouse in what is a severely supply constrained local market, enhancing its occupier appeal and enabling us to drive a significant rental and capital value uplift."
For the period from April 1 to August 23, the firm secured 15 new lettings, nine lease renewals and nine rent reviews across 198,000 square feet of space. It said in August that this will generate GBP1.5 million in annual contracted rent, up 3.5% from estimated rental values at the end of March.
Shares were down 3.0% at 111.40 pence each on Wednesday morning in London.
By Xindi Wei; xindiwei@alliancenews.com
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