Warehouse REIT, the AIM-listed company that invests in e-commerce urban and last-mile industrial warehouse assets in the UK, has bought a portfolio of five single- and multi-let warehouses totalling 570,000 sq ft
The deal with Greenstone Property Holdings is dominated by the 28-unit, 220,000 sq ft Gateway Park at Birmingham Airport, close to junction six of the M42. Tenants there include 3PL FedEx, pan-European freight distributor Circle Express, and Swissport cargo services.
The portofolio also includes 50,000 sq ft at Viables Business Park in Basingstoke, occupied on a lease expiring in 2026; a 200,000 sq ft 10-unit scheme in Avonmouth and 104,000 sq ft in South Wales.
The deals improve the chances of more last mile logistics development by demonstrating the value to investors, which in turn pushes up land prices to the point where logistics is a viable alternative use to residential on competitive urban fringe sites.
The purchase price of £43.6 million reflects an attractive blended net initial yield of 6.7%, a rate of return which will appeal to investors in uncertain times.