Warehouse REIT is pleased to announce that it has successfully raised gross proceeds of c. €170m (£150m) pursuant to the placing and offer for subscription (including an intermediaries offer) of ordinary shares in the capital of the Company as described in the prospectus published by the Company on 23 August 2017. The net proceeds of the Issue are expected to be approximately €166.3m (£146.8m).
The Company will invest the net proceeds of the Issue into a diversified portfolio of UK warehouse assets located in urban areas, including the Tilstone Property Portfolio, a hand-picked seed portfolio of 27 freehold and long leasehold warehouse assets which it will acquire on Admission for €123.3m( £108.85m).
Warehouse REIT is targeting a dividend yield of 5.5p equivalent to a yield of 5.5%. for the year ending 31 March 2019, (covered by earnings and based on the issue price of 100 pence per Ordinary Share) and a total return of at least 10%, through a combination of dividends and NAV growth. The Company intends to adopt a progressive dividend policy.
The Company is an alternative investment fund for the purposes of the AIFM Directive and as such is required to have an investment manager who is duly authorised to undertake the role of an alternative investment fund manager. The Investment Manager is currently G10 Capital Limited, whose role will pass to Tilstone Partners Limited, on receipt of the FCA approval. TPL is the vehicle of the management team which assembled the Portfolio.
Application has been made for Admission of the ordinary shares to AIM. Admission is expected to occur at 08.00 am on 20 September 2017.
Andrew Bird, Managing Director of Tilstone, added: “The support from investors is a strong endorsement for the team’s proven track record in acquiring and enhancing returns from UK warehouse assets. We now look forward to deploying the remaining proceeds into the pipeline acquisitions and identifying further opportunities to unlock latent value through asset management which will enhance future shareholder returns and grow the initial 5.5% dividend. We welcome our new shareholders and look forward to working with them as we seek to deliver on our strategy.”
