Warehouse REIT has sold two properties for a combined £13.4m (€15.7m), exceeding their September 2023 valuation by 3.7%.

The UK real estate investment trust (REIT) said the total consideration for the assets, sold in two separate transactions, reflects an average net initial yield of 5.3%.

The 106,000sqft Warrington South Industrial Estate, acquired in 2019, was sold for £11.6m; and the 20,000sqft Pellon Lane asset in Halifax acquired in 2017, was sold for £1.8m.

Warehouse REIT said the proceeds from the sales will be used to pay down debt, supporting future earnings.

Simon Hope of Warehouse REIT said: “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.”

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