Warehouse REIT has completed the sale of £57.5m of single-let assets in three separate transactions.
The REIT has sold Barlborough Links in Chesterfield for £46m, Parkway Industrial Estate in Plymouth for £6.3m and Celtic Business Park in Newport for £5.2m. The combined sales price is in line with the 31 March 2024 valuation and represents a net yield on passing rent of 5.8%.
Following completion of the sales, the portfolio’s multi-let weighting increased from circa 70% as at 30 September 2023 to circa 77% on a pro forma basis, which is in line with the REIT’s strategic focus on the multi-let warehouse asset class.
Simon Hope, from Warehouse REIT, said: “Rebuilding dividend coverage is our key priority, and by reducing our debt and our finance costs, the sale of these single-let assets is an important milestone in that respect. At the same time, we continue to reshape our portfolio to focus on the highly attractive multi-let sub-sector of UK real estate, which plays to our strengths and is where we can drive income and capital growth over the long term.”
