REG - Warehouse REIT PLC - £35m warehouse development acquisition

Warehouse ReitAnnouncement

21/03/2022 07:15

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RNS Number : 4161F  Warehouse REIT PLC  21 March 2022

21 March 2022

 

Warehouse REIT plc

(the 'Company' or 'Warehouse REIT')

 

WAREHOUSE REIT EXPANDS OXFORD/CAMBRIDGE ARC FOOTPRINT WITH £35 MILLION
MULTI-LET INDUSTRIAL DEVELOPMENT ACQUISITION

 

-170,000 sq. ft scheme will be BREEAM Excellent certified-

 

Warehouse REIT, the AIM-listed company that invests in e-commerce urban and
last-mile industrial warehouse assets in the UK, announces that it has
exchanged contracts to acquire, via a forward funding agreement, a 170,000 sq.
ft multi-let industrial development in Thame, Oxfordshire. The total
commitment is £35 million.

 

A partnership between W Lamb Ltd, Blakelands and Westhall Estates will be
responsible for delivering the scheme under a fixed price turn-key contract.
The Scheme has just secured detailed planning permission and is scheduled to
practically complete in December 2022.  A 12-month rent guarantee has been
agreed with the vendor and would show a running yield in excess of 4.6% based
on the fixed total price of £35 million.

 

Comprising 14 units ranging in size from 3,000 sq. ft to 50,000 sq. ft and
suitable for a range of uses, the development will be delivered to the highest
sustainability specifications, achieving an EPC rating of A and a BREEAM
Excellent certification. Features will include a renewable energy source on
site and the buildings will be set up for electric vehicle charging.

 

The 10.6-acre site is strategically located 15 miles east of Oxford and
adjacent to the A329, 2.5 miles from Junction 7 of the M40 which connects
directly to London and Birmingham.

 

The Oxfordshire industrial market is characterised by an acute demand-supply
imbalance, driven by the growing dual demand from both industrial and science
and technology occupiers. With take up in 2021 reaching record levels and
supply decreasing by nearly a quarter, strong rental growth is forecast.

 

Andrew Bird, Managing Director of the Investment Advisor, Tilstone Partners
Limited, commented:

"This is a rare opportunity to acquire what we consider will be one of the
most sustainable multi-let warehouse schemes in the Oxford area, with strong
day one income guaranteed and the potential to drive rents further over the
short, medium and long term. Agreeing a fixed price basis for the funding with
a very well-respected established development team, combined with our ability
to drive the letting on site, furthers the transaction's appeal.

 

"The acquisition continues the Company's stated strategy of increasing its
exposure to the Oxford/Cambridge Arc, where we have increasingly deep
expertise and relationships, providing a good opportunity to enhance returns
through increasingly favourable supply and demand dynamics, driven by the
pre-eminence of this leading innovation and employment hub."

 

-ENDS-

 
 

 Enquiries:                                                     via FTI Consulting

 Warehouse REIT plc
 Tilstone Partners Limited                                      +44 (0) 1244 470 090

 Andrew Bird, Paul Makin, Peter Greenslade
 FTI Consulting (Financial PR & IR Adviser to the Company)      +44 (0) 20 3727 1000

 Dido Laurimore, Richard Gotla, Ellie Perham-Marchant
 G10 Capital Limited (part of the IQEQ Group), AIFM              +44 207 397 5450

 Maria Glew

 Peel Hunt                                                        +44 (0)20 7418 8900

 Capel Irwin, Carl Gough, Henry Nicholls

Jefferies
 
                +44(0) 20 7029 8000

Tom Yeadon, Gaudi Le Roux, Harry Randall

 

Further information on Warehouse REIT is available on its website:

http://www.warehousereit.co.uk (http://www.warehousereit.co.uk)

 

Notes to editors:

 

Warehouse REIT is an AIM listed UK Real Estate Investment Trust that invests
in and manages E-commerce urban and 'last-mile' industrial warehouse assets in
strategic locations in the UK.

 

Occupier demand for urban warehouse space is increasing as the structural
growth in e-commerce has driven the rise in internet shopping and investment
by retailers in the "last mile" delivery sector, yet supply remains
constrained giving rise to rental growth.

 

The Company is an alternative investment fund ("AIF") for the purposes of the
AIFM Directive and as such is required to have an investment manager who is
duly authorised to undertake the role of an alternative investment fund
manager. The Investment Manager is currently G10 Capital Limited and Tilstone
Partners Limited are the Investment Advisor.

 

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.

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