(Alliance News) - Warehouse REIT PLC on Friday said it plans to raise up to GBP45.9 million through the issue of up to 37.9 million shares at 121.0 pence each.
Shares in the real estate investment trust focused on warehouse assets were trading 2.0% lower at 123.52 pence each on Friday morning in London, giving it a market capitalisation of GBP477.9 million.
Warehouse REIT said the new cash will be used to fund the GBP13.9 million purchase of two distribution warehouses in Harlow totalling 177,000 square feet - with a net initial yield of 8.6% - as well as two other multi-let warehouse estates worth a total of GBP43.5 million, reflecting a blended net initial yield of 5.6%. The combined GBP57.4 million cost of the three transactions give a blended net initial yield of 6.3%, it added.
It highlighted investors participating in the placing will be eligible to receive the third quarterly dividend of 1.55p per share.
The Exeter-based company also said it has a pipeline of further near-term acquisition opportunities worth GBP263.3 million to give a blended net initial yield of 5.9% when combined with the above acquisitions.
Turning to current trading, Warehouse REIT noted that for its financial year ending March 31, it has now received 96% of rents due, with the amount expected to increase further over the current quarter.
Separately, it said it has started the process of applying to the UK Financial Conduct Authority for its shares to be admitted to trading on the main market of the London Stock Exchange. It hopes to conclude the process before September.
By Ife Taiwo; ifetaiwo@alliancenews.com
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Warehouse Reit (WHR)