REG - Warehouse REIT PLC - Two disposals completed totalling £13.4 million

Warehouse ReitAnnouncement

12/02/2024 07:00

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RNS Number : 7224C  Warehouse REIT PLC  12 February 2024

12 February 2024

 

Warehouse REIT plc

(the "Company" or "Warehouse REIT", together with its subsidiaries, the
"Group")

 

Warehouse REIT completes two disposals totalling £13.4 million, 3.7% ahead of
book value

Warehouse REIT, the multi-let industrial warehouse investor, announces the
disposal of two assets in separate transactions for a total consideration of
£13.4 million. The combined price is 3.7% ahead of the September 2023 book
value and reflects an average net initial yield of 5.3%.

The sales comprise:

·      Warrington South Industrial Estate, a 106,000 sq ft single-let
asset acquired in 2019, where we delivered a ten-year lease renewal in 2020;
sold for a total consideration £11.6 million; and

·      Pellon Lane, a 20,000 sq ft multi-let asset in Halifax acquired
in 2017, where we have successfully secured new lettings or renewals on nearly
all the available space since acquisition; sold for £1.8 million.

These transactions bring total sales since 1 April 2023 to £53.0 million,
demonstrating good progress against our commitment to continued capital
recycling. Proceeds from the sales will be used to pay down debt, supporting
future earnings.

Simon Hope, Warehouse REIT commented: "Strengthening our balance sheet and
earnings position by releasing capital from assets which are low yielding or
where we have successfully executed our business plan is a key priority for
us. As these disposals show, we continue to evaluate all opportunities to do
that.

"While the investment market remains subdued, we have sold into pockets of
demand, above book value, enabling us to crystallise value for shareholders
and increase the portfolio weighting to multi-let assets where we see the most
attractive opportunities."

 

Enquiries

 Warehouse REIT plc                                             via FTI Consulting

 Tilstone Partners Limited                                      +44 (0) 1244 470 090

 Simon Hope, Peter Greenslade, Jo Waddingham

 G10 Capital Limited (part of the IQEQ Group), AIFM              +44 (0) 20 7397 5450

 Maria Baldwin

 FTI Consulting (Financial PR & IR Adviser to the Company)

 Dido Laurimore, Richard Gotla, Oliver Parsons                  +44 (0) 20 3727 1000

 

Further information on Warehouse REIT is available on its website:
http://www.warehousereit.co.uk (http://www.warehousereit.co.uk)

 

Notes

Warehouse REIT is UK Real Estate Investment Trust that invests in UK
warehouses, focused on multi-let assets in industrial hubs across the UK.

 

We provide a range of warehouse accommodation in key locations which meets the
needs of a broad range of occupiers.  Our focus on multi-let assets means we
provide occupiers with greater flexibility so we can continue to match their
requirements as their businesses evolve, encouraging them to stay with us for
longer.

 

We invest in our business by selectively acquiring assets with potential and
by delivering opportunities we have created. Through pro-active asset
management we unlock the value inherent in our portfolio, helping to capture
rising rents and driving an increase in capital values to deliver strong
returns for our investors over the long term.  Sustainability is embedded
throughout our business, helping us meet the expectations of our stakeholders
today and futureproofing our business for tomorrow.

 

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 ("AIFM"). The AIFM and the Investment Manager is currently G10 Capital
Limited (Part of the IQEQ Group).

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