Wincanton extends Middlewich lease
Landlord Warehouse REIT has agreed terms with the logistics provider for a 10-year renewal on its 375,000 sq ft unit at Midpoint 18, where it will pay a new headline rent.
Wincanton will pay a new headline rent of £6.50/sq ft, rising to a minimum of £7/sq ft at the end of the fifth year. The new rent represents an uplift of 28.8% against the previous passing rent and secures £2.4m of contracted rent for Warehouse REIT.
The lease includes an occupier break in years three and five: £500,000 of reversion is captured through this lease renewal, bringing total reversion captured in the financial year to date to £2.2m.
The transaction extends the portfolio WAULT to expiry from 4.7 years as at September 2024 to 5.1 years on a pro forma basis.
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Totalling 725,000 sq ft with good access to the M6, Midpoint 18 is the largest asset in Warehouse REIT’s portfolio.
Paul Makin, investment director at Tilstone Partners, said: “We are delighted to have been able to work with Wincanton to satisfy their occupational requirements, with this re-commitment to Midpoint 18 being a strong endorsement of the quality of the space, as well as its strategic location close to the M6 and proximity to key local sources of labour.”
Warehouse REIT was set up as a spin-off business from Tilstone several years ago.
Makin continued: “With the supply of both existing and new multi-let warehousing in the UK continuing to be very tight, and occupational markets remaining resilient across a broad range of sectors, Warehouse REIT, with its highly reversionary portfolio, is well placed to capitalise on these attractive market fundamentals.”
