Warehouse REIT has completed two long-term lettings in Plymouth and Coventry, totalling 205,000 sq ft.
In Coventry, the REIT has agreed a 10-year lease on a 140,000 sq ft building with automotive component manufacturer Evtec Aluminium at a rent of £623,000 per annum, equating to circa £4.50/sq ft – a 17% uplift on the 31 March 2022 ERV and 26% uplift on the previous passing rent.
In Plymouth, 3PL provider Hermes Parcelnet – trading as Evri – has signed a lease on a 66,000 sq ft building, which recently underwent a £1.7m works improvement programme taking its EPC rating from a D to a high B. Evri has signed a 10-year lease at an annual rent of £460,000, reflecting an uplift of 36% on the previous passing rent.
Paul Makin, investment director of Tilstone, investment adviser to Warehouse REIT, said: “With strong ongoing demand for modern warehouse space in well-connected urban locations across the UK, we continue to capture the portfolio’s significant reversionary potential. The Coventry transaction is another significant letting to complete in the West Midlands this year and reflects the region’s chronic undersupply of ready-to-occupy warehousing.
He added: “At the company’s Plymouth asset, our highly experienced team has delivered a modern specification warehouse in what is a severely supply constrained local market, enhancing its occupier appeal and enabling us to drive a significant rental and capital value uplift.”
At its Plymouth site, Warehouse REIT was advised by JLL (agency) and Savills (building consultancy).
