Warehouse REIT invests in Cheshire – Warehouse REIT has exchanged contracts to acquire the Midpoint Estate, a multi-let estate of 20 high quality, individual warehouse units on 29 acres in a strategic location off the M6 motorway in Middlewich, Cheshire for GBP15.5 million, reflecting a net initial yield of 6.6 per cent.
The Midpoint Estate totals 182,500 sq ft with its 20 individual units ranging in size from 2,300 sq ft to 31,600 sq ft, located within two miles of Junction 18 of the M6 motorway and approximately twenty-six miles south of Manchester. The estate comprises high quality, predominantly detached, low density warehouse units, all of which are income producing, and is strategically located in a region with very limited supply of existing and new build alternatives.
This was an off-market transaction. Warehouse REIT’s managers believe that Middlewich sits in a geographical area that is expected to respond (in particular, in respect of rental growth) to active asset management initiatives. It says that there are a number of identified opportunities to grow rents and WAULT. The acquisition, which is due to complete in early October, is being funded from Warehouse REIT’s recently extended bank facilities with HSBC.
Andrew Bird, managing director of Tilstone Partners (the manager), commented: “We continue to source economically relevant warehouse properties, which enable the occupiers to drive profits from their operating businesses. We are witnessing strong levels of occupational demand, which ties into the recent news of record levels of UK employment. With vacancy levels remaining low, the warehouse sector is positively positioned for further rental growth and management are confident in their ability to drive shareholder value.
This acquisition is a further example of the company continuing to take advantage of the attractive opportunities we are seeing. The company does not intend to issue equity in the near term and remains focused on the active management of the portfolio, including the ongoing rotation of a number of smaller assets, to drive future shareholder returns.”
WHR : Warehouse REIT invests in Cheshire