REG - Warehouse REIT PLC - Warehouse REIT completes major long-term lettings

Warehouse ReitAnnouncement

19/10/2022 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20221019:nRSS3305Da&default-theme=true

RNS Number : 3305D  Warehouse REIT PLC  19 October 2022

 

19 October 2022

 

Warehouse REIT completes major lettings totalling 205,000 sq ft at 24% ahead
of ERVs

 

Warehouse REIT, the specialist urban and 'last-mile' industrial warehouse
investor, has completed two long-term lettings in Plymouth and Coventry,
totalling 205,000 sq ft, which will generate over £1 million of annual
contracted rent. Achieved at an average 24% above ERVs and 30% above the
previous passing rents, the transactions demonstrate the ongoing strength of
the UK warehouse occupier market, which continues to be characterised by
historically low vacancy levels.

 

At its modern urban warehouse in Coventry, the Company has agreed a 140,000 sq
ft letting of the entire building to Evtec Aluminium Ltd, a leading automotive
component manufacturer, at a rent representing a 17 % uplift on the 31 March
2022 ERV and 26% uplift on the previous passing rent. The 10-year lease with
no break will generate contracted rent of £623,000 per annum, equating to
circa £4.50 psf.

 

Coventry is well served by the M6 motorway.  With Junction 3 situated four
miles to the north, the town has excellent transport infrastructure to serve
the Midlands and beyond, with both Birmingham City Centre and the M6/M1
motorways intersection being less than 20 miles away.

 

In a second transaction, Warehouse REIT has completed a 66,000 sq ft letting
to leading 3PL provider Hermes Parcelnet (t/a Evri), at its central Plymouth
warehouse, following a targeted capital expenditure programme.  Serving as a
key distribution centre in the southwest, Evri has signed a new 10-year lease
with no break clause, at an annual rent of £460,000, reflecting an uplift of
36% on the previous passing rent.

 

Having acquired the property in 2017, Warehouse REIT commenced a £1.7 million
programme of works during 2021 on expiry of the former occupier's lease.
Refurbishment works included the replacement of the building's roof, the
installation of new LED lighting throughout, new EV charging points, as well
as extensive internal and external redecoration. The building's EPC rating was
significantly improved from a D to a high B.

 

The warehouse benefits from its close proximity to the A38, a major arterial
route connecting Cornwall in the southwest and Mansfield in the East Midlands
and is just one mile from Plymouth city centre.

 

Paul Makin, Investment Director of Tilstone, Investment Adviser to Warehouse
REIT, commented: "With strong ongoing demand for modern warehouse space in
well-connected urban locations across the UK, we continue to capture the
portfolio's significant reversionary potential. The Coventry transaction is
another significant letting to complete in the West Midlands this year and
reflects the region's chronic undersupply of ready-to-occupy warehousing.

 

"At the Company's Plymouth asset, our highly experienced team has delivered a
modern specification warehouse in what is a severely supply constrained local
market, enhancing its occupier appeal and enabling us to drive a significant
rental and capital value uplift."

Commenting on the Plymouth letting, Gary Lees, Regional Asset Management
Director of Tilstone,

added: "We were pleased to have agreed terms with Evri early in the
refurbishment process and to be able to satisfy its occupational requirements.
We look forward to building on the great relationship forged with the Evri
team and will continue to look for opportunities to work together."

 

At Plymouth, Warehouse REIT was advised by Tim Western of JLL (agency) and
Craig Keogh of Savills (Building Consultancy).

 

-End-

 

Enquiries:

Warehouse REIT plc

via FTI Consulting

 

Tilstone Partners Limited

Andrew Bird, Paul Makin, Peter Greenslade

+44 (0) 1244 470 090

 

G10 Capital Limited (part of the IQEQ Group, AIFM

Maria Glew

+44 (0) 207 397 5450

 

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

Dido Laurimore, Richard Gotla, Ellie Perham-Marchant

+44 (0) 7904 122207 / WarehouseReit@fticonsulting.com

 

Further information on Warehouse REIT is available on its website:

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

 

About Warehouse REIT

 

Warehouse REIT plc invests in and manages urban and 'last-mile' industrial
warehouse assets.

 

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 is listed on the Main Market of the London Stock Exchange and 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.

 

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCFZMMGGRGGZZZ