Warehouse REIT has purchased an £18.25m portfolio of seven industrial assets in the North West from a private investor, reflecting a net initial yield of 7%.
The 326,254 sq ft portfolio takes the company’s total AUM to £167m.
With five of the assets situated within six miles of Manchester city centre, Warehouse REIT said the portfolio was in line with its last-mile investment strategy.
It added that there was scope for “significant reversionary potential” due to a low average passing rent of £3.49 per sq ft, alongside potential planning for a further 24,000 sq ft of additional space.
Neil Kirton, non-executive chairman of Warehouse REIT, said: “This portfolio, and the attractive yield at which it has been secured, clearly fits with Warehouse REIT’s investment strategy of acquiring good quality, well located assets that offer compelling opportunities to enhance value through asset management.
“We look forward to integrating these assets into our wider portfolio while we continue to source new opportunities to effectively deploy the remainder of our IPO proceeds in order maximise the income returns we deliver for shareholders.”
The seven assets were:
- Road One, Winsford (78,178 sq ft warehouse)
- Parkway Zone 2, Deeside Industrial Estate, Chester (60,081 sq ft production facility)
- Quantum Park, Manchester (46,507 sq ft trade counter)
- Europa Trading Estate, Kearsley, Manchester (40,000 sq ft warehouse)
- Wardley Industrial Estate, Manchester (38,901 sq ft warehouse)
- Linkway Industrial Estate, Middleton (48,074 sq ft warehouse)
- The Oakfield Centre, Sharston, Manchester (14,513 sq ft warehouse)
Stewart Montrose advised the seller.
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