Industrial warehouse investor Warehouse REIT has concluded the sale of two distribution estates in the UK totalling 24,990 m2 for £29.5 mln (€33 mln).
One is a vacant 18,116 m2 warehouse in Theale with a high office component, bought by an unnamed occupier for £15.0 mln (€17 mln).
The other is Temple House in Harlow, sold for £14.5 mln (€16.5 mln) ahead of a potential vacancy and capital expenditure costs, following the receipt of notice to break from the main tenant in March 2023.
The disposals come after the £13.9 mln (€15.8 mln) of sales announced in November 2022, taking total disposals to £54.7 mln (€62.1 mln) in H2.
Paul Makin, investment director of the investment advisor, Tilstone Partners Limited, commented: ‘We continue to make strong progress on delivering on the company's strategy to minimise vacancy, capture the portfolio's inbuilt reversion and reduce debt. We have taken advantage of continued investor demand for exposure to the sector by arranging for the company to undertake two further opportunistic disposals of assets requiring significant capital expenditure, simultaneously demonstrating the ongoing liquidity of the Company's real estate. In total, the company has completed £54.7 mln of sales during H2. Occupationally, the UK logistics market remains robust, evidenced by the progress on increasing occupation across the portfolio.’
Additionally, Warehouse REIT has increased portfolio occupancy to 95.9% as of 28 February 2023 up from 92.7% on 7 November 2022 through active asset management efforts and disposals.
This includes a new 10-year lease on Midpoint 18 in Chesire with Inhealth Intelligence, generating annual rent of £0.2 mln (€0.2 mln).
Warehouse REIT has also completed an open storage scheme on surplus land at Midpoint 18 for £3.9 mln (€4.4 mln), signing a 15-year lease with Brit European for £0.3 mln (€0.3 mln) per year.
Warehouse REIT is focused on last mile industrial warehouses in urban areas of the UK with a portfolio of over 771,000 m2.
