Industrial warehouse investor Warehouse REIT has sold two distribution estates totalling 269,000 sq ft for £29.5m, generating an ungeared IRR of 9%.
The REIT sold a vacant 92,000 sq ft warehouse at 12 Exeter Way, Theale, to an owner occupier for £15m, and in Harlow it sold Temple House for £14.5m ahead of a potential vacancy and capex costs.
Warehouse REIT said that including these recent sales it had raised £54.7m from disposals in the second half of its financial year to date, in line with its strategy to capture the “inbuilt reversion” across its 8.3m sq ft portfolio, “whilst also recycling proceeds through sales to pay down its overall level of debt”.
Paul Makin, investment director of Warehouse REIT’s investment advisor Tilstone Partners, said: “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 £54.7m of sales during H2.”
