Warehouse REIT buys 200,000 sq ft of last mile warehouses – Warehouse REIT has bought a portfolio of four single and multi-let distribution warehouse assets for £18.6m. The purchase price reflects a blended net initial yield of 6.1%.
Situated in key strategic last mile distribution hubs within the North West and the West Midlands, the 200,000 sq ft portfolio is 100% occupied on leases producing a total rent of £1.22m a year with an average rent £6.10 psf, which is both reversionary and offers good potential for rental growth. Whilst the portfolio already has a WAULT of circa five years, there is also good potential to increase the longevity of the income in the short term. The individual assets are:
- Stonebridge Cross, Droitwich Spa, comprising two modern detached industrial units totalling 48,000 sq ft within the 77-acre Stonebridge Cross Business Park, situated two miles to the north west of Droitwich Spa town centre and three miles from Junction 5 of the M5, a key arterial route linking the Midlands with South West England. The asset is let to two service companies taking advantage of its close proximity to employment and ease of access to the national motorway distribution network.
- Valley Point, Rugby, a 39,000 sq ft unit on Swift Valley Park, situated in one of West Midlands Prime industrial locations, with access to the M6 (J1) and the M1 (J19) in under ten minutes. The property has a short unexpired term and offers the potential to capitalise on its situation within the UK’s ‘Golden Triangle’ formed by the M1, M6 and M69 motorways, providing access to 80% of the UK’s population within a four-hour drive time.
- 1 Kingsland Grange, Warrington, a 71,000 sq ft property on the established Kingsland Grange Business Park, in one of the UK’s prime industrial, logistics and distribution locations located approximately three miles from Warrington town centre and adjacent to J21 of the M6. The property is currently let to a leading global supplier of high-performance plastic compounds.
- Milner Street, Warrington, a 42,000 sq ft multi-let warehouse situated in a prime location in the heart of the Bank Quay Gateway Quarter close to Warrington town centre, a well-established commercial location. The property is fully let to Selco Trade Centres and UK Storage Company.
Warehouse REIT has spent £163m since raising an additional £153m in July this year.
WHR : Warehouse REIT buys 200,000 sq ft of last mile warehouses