New UK property investment company Warehouse REIT plans to raise up to £150m (€164m) by floating on the London Stock Exchange.
The real estate investment trust (REIT) will invest in a diversified portfolio of UK warehouse assets located in urban areas.
Warehouse REIT will be seeded with 27 assets worth £109m from Tilstone, a company that specialises in providing warehouses to retailers that include Boots, Amazon, Asda and Argos.
It is targeting a dividend yield of 5.5% for the year ending 31 March 2019, and a total return of at least 10% through a combination of dividends and capital growth.
Investment management is undertaken by G10 Capital, but the role will pass to Tilstone Partners once it has been given regulatory approval.
Andrew Bird, managing director of Tilstone, said: “Warehouse REIT provides an exciting opportunity for the management team to continue to build a diverse UK warehouse property portfolio which will benefit from the ongoing rental growth independently forecast to be 3% per annum over the next five years.
“Our job is to seek to outperform the forecast. With our own investment in the REIT, there can be no better alignment with the wider shareholder base.”