Warehouse REIT has acquired an industrial estate in Milton Keynes for £17.5m.
The company has bought the Granby Industrial Estate, which comprises 24 urban logistics and trade counter units, for a net initial yield of 5.7%.
The 10-acre estate offers 147,000 sq ft of gross lettable area which is let to 16 tenants, across 19 of the 24 units, with occupiers including Toolstation, Sally Salon and an NHS Foundation Trust. The warehouses provide a range of unit sizes from 1,600 sq ft to 28,000 sq ft with the potential to increase the rental income through refurbishments. The estate generates total rental income of £1.1m per annum equating to an average rent of £7.20 per sq ft.
Following this transaction, Warehouse REIT will have substantially deployed the proceeds of its £153m equity raise in July. It has acquired or agreed to acquire 1.7 million sq ft of warehouse space across six acquisitions, for a combined aggregate purchase price of £152m, which will generate £9.2m of new annualised rental income.
WHR : Warehouse REIT acquires industrial estate for £17.5m