Warehouse REIT has completed the sale of two assets totalling c. €11m, together 30% ahead of the 31 March 2023 book value, reflecting an average net initial yield on passing rents of 6%.
The disposals comprise warehouses in Carisbrooke on the Isle of Wight, for c. €3.6m, and on Newport Road, Cardiff for c. €7.4m. These assets have been in the portfolio for six and three years, respectively. In both cases, significant asset management enhancements have been delivered and these assets are now considered non-core.
Simon Hope, Co-Managing Director of Tilstone, Investment Advisor to Warehouse REIT commented: “These sales demonstrate good progress on the plan Warehouse REIT set out in June. Since then, its successful capital recycling has strengthened the Company’s balance sheet and earnings position, whilst refining the portfolio and allowing the Company to focus on assets with the strongest opportunities. The premium to book value achieved across these sales provides further evidence that liquidity for well-let warehouse assets remains and illustrates Warehouse REIT’s ability to create and crystallise value for shareholders through asset management despite the difficult macroeconomic conditions.”
