Warehouse REIT has exchanged contracts to acquire a multi-unit estate in Northampton let to John Lewis and a multi-let industrial estate in Aberdeen. The assets were purchased in two separate transactions for a total consideration of €42.8m (£37m), reflecting a blended net initial yield of 6.6%.
The property in Northampton comprises 336,000ft² and is let to John Lewis with a headline rent of €2.1m (£1,8m) per annum across both units. The scheme is situated within the 'Golden Triangle' on the Brackmills Industrial Estate, one of the UK's premier distributio locations providing excellent access to the M1motorway. Other local occupiers include DHL, Yodel, Great Bear and ASDA.
The asset in Aberdeen, which is arranged across four separate terraces and is 100% let to a range of occupiers with a weighted average unexpired lease term of 8 years (5.2 years to break), generates a total net passing rent of €897,478 (£776,030) per annum. The 8.5-acre site is situated within the Bridge of Don Industrial estate, a major industrial and business area, and benefits from both its prominent position fronting the A90 dual carriageway and proximity to Aberdeen City Centre.
Andrew Bird of Tilstone commented: "Following the successful fundraiser providing the REIT with €138.8m (£120m) of capital to deploy, it is pleasing to deliver these high quality acquisitions, including another from our identified near term pipeline at the time of the equity raise, as we continue to demonstrate that we have the team in place to originate and acquire a range of favourably yielding opportunities across the UK. In Northampton, the warehouses are operationally critical to John Lewis in what is still an undersupplied part of the UK for mid-box warehouses, whilst the Murcar industrial estate will deliver attractive day one income at the same time as presenting a number of value-enhancing asset management initiatives to both improve the rental tone and deliver capital growth."
