Warehouse REIT acquires 200,000 square foot warehouse portfolio

(Sharecast News) - Real estate investment trust Warehouse REIT acquired a 200,000 square foot last mile warehouse portfolio for £18.6m on Tuesday.
Warehouse REIT snapped up the portfolio, comprising four single and multi-let distribution warehouse assets, at a blended net initial yield of 6.1%.

The AIM-listed group said the assets were situated in key strategic last-mile distribution hubs within the North West and the West Midlands and were 100% occupied on leases producing a total rent of £1.22m per year with an average rent £6.10 per square foot.

Warehouse REIT added that whilst the portfolio already has a weighted average unexpired lease term of around five years, there was also "good potential" to increase the longevity of the income in the short term.

Andrew Bird, managing director of Tilstone Partners, Warehouse REIT's investment advisor, said: "We are pleased with this latest addition to the Company's portfolio, which represents an increasingly rare opportunity to acquire a strategic portfolio of assets, in tactical last-mile distribution locations, capable of serving the growing e-commerce demand benefitting from ease of access to major UK conurbations in the North West and West Midlands regions.

"Having invested the equity from July's capital raise, we remain focused on advising Warehouse REIT in deploying the remaining associated debt in order to further improve the portfolio metrics and continue to generate shareholder value."

As of 0920 GMT, Warehouse REIT shares were up 1.77% at 115.0p.