Warehouse REIT raises €53m to find acquisition spree

The company will issue of up to 38 million new ordinary shares at a price of 121.0 pence apiece, with the proceeds being used to acquire two adjacent distribution warehouses in Harlow, UK for £13.9 mln (including costs), or a net initial yield of 8.6%.

The Group has under offer two further purpose built modern multi-let warehouse estates located in two separate premier UK business locations both being in very close proximity to key transportation hubs for £43.5 mln (including costs) reflecting a blended NIY of 5.6%.

Since July 2020, the Group has completed on £162 mln of acquisitions totalling 1.8 million sq ft and taking the portfolio to 7.9 million sq ft. It has an attractive pipeline of further near-term acquisition opportunities which amounts to £263.3 mln.

Andrew Bird, managing director of manager Tilstone Partners, commented: ‘We are seeing unprecedented demand for modern, fit-for purpose warehouse space in economically relevant locations, underpinned by e-commerce growth which has accelerated as businesses of all size look to adapt and future proof their operations. Despite increasing competition for exposure to what has been a standout performing asset class, a combination of our on the ground intelligence and deep relationships and a wide pool of motivated sellers has seen the Company deploy the proceeds from last year’s capital raise on schedule and into highly attractive opportunities, offering both strong day one income and longer-term asset management opportunities. Having identified a sizeable pipeline at what we believe is favourable pricing and which will be immediately accretive, we look forward, with shareholder support, to building on this momentum.’

The company is considering a move to the main market of the London Stock Exchange as it believes that this would better align the company with similarly sized companies in the sector and afford it access to a wider institutional investor base in the UK and overseas.