Warehouse REIT plc has acquired the two warehouses in separate transactions. The yield of 5.4% means buying warehouses offers a vastly better return than other rival homes for investment including government bonds and the stock market. The investor has a £200 million war chest ready for further purchases.
Warehouse REIT plc bought a 500,000 sq ft Chesterfield warehouse where Amazon have 13 years left on a lease with five-yearly upward only rent reviews with no breaks. They paid £57 million to vendor Tritax Big Box Reit.
The second acquisition was a Midpoint 18 at Middlewich totalling 374,000 sq ft. The asset, acquired for cash consideration of £25 million, is occupied by Wincanton Holdings Limited, the UK’s largest third party logistics operator, and has 3.5 years remaining on its lease. The appeal for the new owners is replacing the Wincanton lease with a higher-rented version.