Gawsworth Court Aerial
Gawsworth Court, one of the new Warehouse REIT's North West assets

Sheds sold to newly floated industrial investor

Warehouse REIT, which was admitted to the AIM sub-market of the London Stock Exchange on 20 September, has acquired four multi-let Hansteen estates, understood to include Nexus Industrial Estate in Knowsley, Pikelaw Place in Skelmersdale and a holding at Radway Green, Crewe.

The new REIT has been set up as a spin-off from industrial business Tilstone to target urban assets. It raised £150m on its IPO last week, following which a 27-strong seed portfolio was sold by Tilstone into the new business for £108.9m

The four estates were described in the company’s flotation prospectus as pipeline assets and contracts have now been exchanged for £26.25m plus costs, reflecting a net initial yield of 7.5%.

The REIT said that the assets have been acquired in line with its investment strategy of sites in urban areas or on strategic infrastructure links.

The four estates cover a total floor area of 603,000 sq ft and generate an annual net rent of £2.11m. With an average passing rent equating to £3.50 per sq ft, the company said that it believes there is potential for long-term rental growth.

Neil Kirton, non-executive chairman of Warehouse REIT, said of the Hansteen deal: “This transaction is firmly in line with our investment strategy set out at the time of the IPO, for good quality, well located assets with plenty of opportunities to enhance value through asset management.

“Whilst the vendor has run a successful letting campaign with voids down to 9% of estimated rental value, this reflects slightly more than the national average, which is characterised by a shortage of well-located warehouse stock, driven by the structural shifts taking place in last mile delivery.”

The 27 assets in the Tilstone portfolio include Gawsworth Court in Warrington, Lincoln Park in Preston, Jensen Court in Runcorn, Caernarfon Road Bangor, Wharton Retail Park in Winsford, Burnell Road and Ross Road in Ellesmere Port, and Crown Street Carlisle.

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