Warehouse REIT divests two distribution assets for £29.5m

Warehouse REIT divests two distribution assets for £29.5m

Warehouse REIT has completed the sale of two distribution assets totalling 269,000 per sq ft for £29.5 million, generating an ungeared IRR of 9%.

The REIT sold 12 Exeter Way, a vacant 92,000 sq ft warehouse in Theale for £15.0 million and Temple House in Harlow, for £14.5 million.

These disposals, in addition to the £13.9 million of sales announced at the half year results on 8 November 2022, have been augmented by another £11.3 million of smaller asset sales, taking total H2 disposals to £54.7 million, the company said.

Paul Makin, Investment Director of the Investment Advisor, Tilstone Partners Limited, commented: “We continue to make strong progress on delivering on the company’s strategy to minimise vacancy, capture the portfolio’s inbuilt reversion and reduce debt. We have taken advantage of continued investor demand for exposure to the sector by arranging for the company to undertake two further opportunistic disposals of assets requiring significant capital expenditure, simultaneously demonstrating the ongoing liquidity of the company’s real estate. In total, the company has completed £54.7 million of sales during H2.

“Occupationally, the UK logistics market remains robust, evidenced by the progress on increasing occupation across the portfolio.  The transactions at Midpoint 18 also demonstrate the acute shortage of good quality accommodation in the North West market, as well as the benefits of the locations of the company’s assets, close to key infrastructure and employment hubs.”

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