Warehouse REIT PLC Acquisition of two warehouses for GBP14m (0853O)

TIDMWHR

RNS Number : 0853O

Warehouse REIT PLC

05 February 2021

5 February 2021

Warehouse REIT plc

(the 'Company' or 'Warehouse REIT')

WAREHOUSE REIT ACQUIRES TWO SOUTH EAST DISTRIBUTION WAREHOUSES FOR GBP14M

Warehouse REIT, the AIM-listed company that invests in e-commerce urban and last-mile industrial warehouse assets in the UK, announces the acquisition of two adjacent distribution warehouses in Harlow, totalling 177,000 sq ft, for GBP13.9 million including costs. The purchase price reflects a net initial yield of 8.6%.

Situated in the heart of the established Templefields industrial area, Harlow's premier industrial and distribution location, the property comprises two modern units of 115,000 sq ft and 62,000 sq ft respectively. It generates GBP1.2 million of contracted rent per annum which equates to a low passing rent of GBP6.72 psf, offering significant potential for rental growth. The larger unit is let to the UK subsidiary of a global beauty & cosmetics company, with over four years remaining on the lease, and reflecting the strategic location, serves as its primary UK distribution hub. The second unit is occupied by a specialist in shop fittings and supplies, currently assisting retailers with H&S and PPE, on a short term lease.

Harlow is an established commercial centre in the South East, located in the north east quadrant of London's Orbital M25 motorway and 30 miles (45 km) north of Central London. It forms part of the London commuter belt, with approximately 200,000 people living within a 6 mile (10 km) radius. It benefits from excellent arterial connectivity, 4 miles (6 km) from Junction 7 of the M11 and 8 miles (13 km) from Junction 27 of the M25.

The South East industrial market continues to be characterised by strong take up with a number of major international and national retailers, 3PLs and manufacturers basing their national distribution operations in the region in order to benefit from the proximity to London, the South East and the Midlands. Harlow is especially attractive to occupiers due to a combination of readily available labour at comparably lower rates and discounted rental levels versus other M25 orbital locations.

Andrew Bird, Managing Director of the Investment Advisor, Tilstone Partners Limited, commented: "Harlow is a highly sought after and fast growing South East industrial location offering access to a significant portion of the UK population in a relatively short drive time. These acquisitions fit with the Company's strategy of acquiring a mix of strong day one income, near term lease events allowing us to capture the reversion as well as longer term asset management opportunities.

"Despite increasing investor appetite for industrial exposure, the strength of our UK wide origination capability means we are constantly screening new opportunities. Advanced due diligence and negotiations are underway on several assets that meet Warehouse REIT's investment criteria, at both an individual asset and portfolio level."

-ENDS-

 
              Enquiries:                                  via FTI Consulting 
               Warehouse REIT plc 
 Tilstone Partners Limited                                [phone] 
  Andrew Bird, Paul Makin, Peter Greenslade                090 
 FTI Consulting (Financial PR & IR Adviser to the 
  Company)                                                [phone] 
  Dido Laurimore, Richard Gotla, Ellie Perham-Marchant     1000 
 G10 Capital Limited (part of the IQEQ Group), AIFM        [phone] 
  Maria Glew                                                1302 
 Peel Hunt (Financial Adviser, Nominated Adviser and 
  Broker)                                                  [phone] 
  Capel Irwin, Carl Gough, Harry Nicholas                   8900 
 

Further information on Warehouse REIT is available on its website:

http://www.warehousereit.co.uk

Notes to editors:

Warehouse REIT plc invests in and manages urban and 'last-mile' industrial warehouse assets that support the continued growth in e-commerce.

Our purpose is to own and manage warehouses in economically vibrant urban areas across the UK, providing the space our occupiers need for their businesses to thrive.

As we grow, our vision is to become the UK's warehouse provider of choice.

The Company's shares were admitted to trading on AIM in 2017.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

ACQDDGDDXDGDGBS

(END) Dow Jones Newswires

February 05, 2021 02:00 ET (07:00 GMT)