Helical Bar today announces that it has acquired a portfolio of eleven industrial and distribution warehouse assets from a separate account client of Rockspring Property Investment Managers for a total consideration of £29.7 mln (approx. €37 mln), reflecting a net initial yield of 8.0%, excluding one vacant property in Rugby. The acquisition was funded through the company's existing cash resources.
The portfolio, with a total floor area of circa 42,700 m², comprises seven multi-let industrial estates located in Gloucester, Northampton, Milton Keynes, Bedford, Slough and Barking and four single let distribution warehouses properties in Bolton, Telford, Cardiff and Rugby.
The aggregate annual rental income of the eleven assets is £2.4 mln (approx. €3 mln), and key tenants include Booker and Parcelpoint. The average weighted unexpired lease term is approximately 3.8 years to expiry and 3.0 years to break.
Duncan Walker, Investment Director at Helical Bar, commented: "This portfolio combines good cash-flow with a number of asset management opportunities to re-gear and re-let the assets. Demand for high-quality, well-let logistics assets in the UK remains robust, driven by strong e-commerce and manufacturing trends, together with the lack of new supply.
"We are pleased to have deployed a substantial amount of the funds raised through the convertible bond into this transaction and hope to be able to announce further acquisitions soon as we continue to grow the portfolio."
Source:Helical Bar PLC