Warehouse REIT completes two acquisitions and eyes further deals

Warehouse REIT has completed the £13.9 million acquisition of two warehouses in Harlow and is targeting further deals after successfully completing a placing to raise £45.9 million. The industrial warehouse investment firm said the capital raising will also be used to help fund the acquisition of two further assets totalling £45.3 million.

The placing will involve the issuing of up to 37.9 million new ordinary shares at a price of 121p per share. Warehouse REIT revealed it has a pipeline of further near-term acquisition targets amounting to £263.3 million.

Warehouse REIT Chairman Neil Kirton said: "We are extremely grateful for the support of both our existing and new shareholders. The proceeds will allow us to execute on our near-term attractive acquisition pipeline, thereby immediately improving the portfolio's diversification and income metrics.”

“With the advantage of an established foothold in this high growth sector, we remain alert to the opportunity to continue scaling the business in a manner that will translate into shareholder value."

Andrew Bird, Managing Director at Tilstone Partners, which acts as Warehouse REIT’s investment adviser, commented: “We are seeing unprecedented demand for modern, fit-for-purpose warehouse space in economically relevant locations, underpinned by e-commerce growth which has accelerated as businesses of all size look to adapt and future proof their operations.

“Having committed to an investment strategy founded on this evolution back in 2013, the company has been able to amass a portfolio of scale, delivering both rental and capital growth even against the backdrop of the current pandemic, allowing for the generation of significant returns for shareholders.”

The Harlow warehouses are adjacent distribution units located within the Templefields industrial estate. The sites are 115,000 sq ft and 62,000 sq ft respectively and generate annual contracted revenue of £1.2 million.

The larger warehouse is currently the primary distribution hub of the UK subsidiary of a global beauty and cosmetics group, while the smaller unit is occupied by a shop fittings and supplies specialist.

Andrew Bird said: "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."


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