Warehouse REIT has sold two assets in separate transactions for a total consideration of £13.4m. The combined price is 3.7% ahead of the September 2023 book value and reflects an average net initial yield of 5.3%.
At Warrington South Industrial Estate, the company has sold a 106,000 sq ft single-let warehouse for £11.6m and on Pellon Lane, Halifax, it has sold a 20,000 sq ft multi-let asset for £1.8m.
Warehouse REIT said proceeds from the sales would be used to pay down debt, supporting future earnings.
Simon Hope, co-managing director of Warehouse REIT, said: “Strengthening our balance sheet and earnings position by releasing capital from assets which are low yielding or where we have successfully executed our business plan is a key priority for us. As these disposals show, we continue to evaluate all opportunities to do that.
“While the investment market remains subdued, we have sold into pockets of demand, above book value, enabling us to crystallise value for shareholders and increase the portfolio weighting to multi-let assets where we see the most attractive opportunities.”
