(Alliance News) - Warehouse REIT PLC on Monday said it will acquire a 570,000 square-foot portfolio in England and Wales from Greenstone Property Holdings Ltd for GBP43.6 million.
The real estate investment trust said the portfolio - valued at GBP43.6 million as at September 29 - comprises five single-let and multi-let warehouse assets across the UK and is 90% occupied on leases with a total contracted annual rent of GBP3.0 million.
It added the purchase price reflects a blended net initial yield of 6.7% and provides a combined weighted average unexpired lease term of 5.5 years.
The properties in the portfolio are 200,000 square-foot Chittening Industrial Estate in Avonmouth, 28-unit 220,000 square-foot industrial estate Gateway Park near Birmingham Airport, a 50,000 square-foot unit on Viables Business Park in Basingstoke, a three-unit 50,000 square-foot warehouse in Cardiff and a 54,000 square-foot warehouse in Ebbw Vale, South Wales.
"This is an increasingly rare opportunity to acquire an immediately accretive and diverse portfolio of assets which fits with our stated investment strategy, whilst offering both short and longer-term asset management opportunities through a mixture of vacancy and short income. Despite strong competition for industrial assets, as an increasingly diverse range of occupiers seek to ensure their businesses are fit for purpose as e-commerce penetration accelerates, we continue to originate and successfully execute on attractive transactions," said Andrew Bird, managing director of Warehouse REIT's investment advisor, Tilstone Partners Ltd.
Shares in Warehouse REIT were trading 0.6% higher at 114.65 pence each on Monday afternoon in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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Warehouse Reit (WHR)