(Alliance News) - Warehouse REIT PLC on Wednesday announced the GBP70 million acquisition of a number of warehouse and distribution assets in the UK.
The eight assets have been bought from Aviva Investors, and have an annual rent of GBP5.4 million. The purchase prices gives a net initial yield of just over 7%.
The 995,106 square foot portfolio consists of one multi-let and seven single-let warehouses. Occupants include Amazon Inc and Direct Wines, the trading name of home-delivery company Laithwaites Wine.
All assets are near major UK conurbations, Warehouse REIT said, including Reading, Leicester, Nottingham, and Warrington.
The company has made a number of acquisitions in recent months, spending GBP5.3 million in July and GBP41 million in April. In March, it raised GBP76.5 million in a share placing, well short of a GBP100 million target.
Andrew Bird, of Warehouse REIT's investment manager Tilstone, said: "This is a highly attractive portfolio with 100% of income secured against D&B rated "minimum risk" covenants. The reversionary nature of the portfolio sits within some short leases and some below-market rents, however the quality of the assets and the strength of their locations give us confidence we will be able to unlock value through active management.
"This transaction means the company has now acquired 14 assets within six months, fully deploying the proceeds of our most recent fundraise. We are pleased the company has utilised shareholders' funds quickly but prudently and are excited about the quality of those assets that the company has purchased, which we expect will deliver good operational performance.
"We continue to see attractive acquisition opportunities underpinned by solid occupation demand and remain focussed on the continued management of the company's portfolio to drive future shareholder returns," Bird added.
Warehouse REIT shares were 1.0% lower on Wednesday afternoon at 102.00 pence each.
Warehouse Reit (WHR)