Warehouse REIT has recently concluded the sale of two distribution estates totalling 269,000 per ft², for €33.6m (£29.5m), generating an ungeared IRR of 9%.
The disposals comprise:
· 12 Exeter Way, Theale, a vacant 92,000ft² warehouse with a high office component, acquired by an owner occupier for €17m (£15m).
· Temple House, Harlow, for €16.5m (£14.5m).
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 €62.3m (£54.7m) of sales during H2. Occupationally, the UK logistics market remains robust, evidenced by the progress on increasing occupation across the portfolio. The transactions at Midpoint 18 also demonstrate the acute shortage of good quality accommodation in the North West market, as well as the benefits of the locations of the Company's assets, close to key infrastructure and employment hubs."
