Warehouse REIT, the AIM-listed company that invests in e-commerce urban and last-mile industrial warehouse assets in the UK, has exchanged contracts to acquire Bradwell Abbey Industrial Estate in the UK for £62 mln (€74 mln) excluding acquisition costs.
The purchase price reflects a net initial yield of 4% based on day one passing / guaranteed income.
The multi-let industrial estate totals 69 units across 335,000 sq ft (31,120 m2). It is located just off the A5, providing fast access to the surrounding population of Milton Keynes and the wider motorway network.
The estate is currently 96% leased to a range of occupiers including Argos, F&F Stores and Taylor Kerr Engineering and produces a total annual income (including some rental guarantees) of over £2.6 mln. The low average rent of £7.80 per sq ft offers good reversionary potential.
Andrew Bird, managing director of the investment advisor, Tilstone Partners, commented: ‘This acquisition, provides Warehouse REIT with clear opportunities to generate upside through strategic capital expenditure and working with the existing occupiers. We intend to refurbish units as they become available, improving the estate’s sustainability credentials, enabling us to capture new rental levels which will help drive future rents across the estate and strengthen the covenant profile.’
