Warehouse REIT has completed the sale of £57.5m of single-let assets in three separate transactions. The combined sales price is in line with the 31 March 2024 valuation and represents a net yield on passing rent of 5.8%.
The sales bring total proceeds raised since the company announced its deleveraging plan in November 2022 to £165.2m.
The transactions comprise: Barlborough Links in Chesterfield, sold for £46.0m; Parkway Industrial Estate in Plymouth, sold for £6.3m; and Celtic Business Park in Newport, sold for £5.2m.
Following the sales, the portfolio’s multi-let weighting increases from 70% as at 30 September 2023 to 77% on a pro forma basis. This is in line with the group’s strategic focus on the multi-let warehouse asset class, which it said can accommodate a broader range of occupier at every stage of its life cycle, and provide faster access to rental reversion, given the frequency of lease events.
Warehouse REIT remains committed to extracting value from Radway Green, its development site in Crewe, where negotiations are progressing well.
Simon Hope, Warehouse REIT, commented: “Rebuilding dividend coverage is our key priority, and by reducing our debt and our finance costs, the sale of these single-let assets is an important milestone in that respect. At the same time, we continue to reshape our portfolio to focus on the highly attractive multi-let subsector of UK real estate, which plays to our strengths and is where we can drive income and capital growth over the long term.”
Warehouse REIT will announce its full year results for the period ended 31 March 2024 tomorrow (25 June 2024).