Warehouse REIT makes £13.4m in portfolio sales as it continues to focus on debt reduction
In a stock exchange notice this morning, the trust said that the combined price of the sales was 3.7 per cent ahead of the book value from September 2023 and reflected an average net initial yield of 5.3 per cent.
Warehouse REIT, the real estate investment trust, has made a £13.4m deal to sell 3.7 per cent of its portfolio, with two assets sold in separate transactions.
The sale will see Warrington South Industrial Estate, a 106,000 square-foot single-asset which was acquired in 2019 by the trust, sold for £11.6m.
Meanwhile, Pellon Lane in Halifax, a 20,000-square-foot multi-let asset acquired by the trust in 2017, will be sold for £1.8m.
In a stock exchange notice this morning, the trust said that the combined price of the sales was 3.7 per cent ahead of the book value from September 2023 and reflected an average net initial yield of 5.3 per cent.
With these transactions, total sales for the trust since 1 April 2023 now sit at £53m, with the proceeds from the sales being used to pay down debt.
Simon Hope, founder 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.”
The trust’s share price is up 1.6 per cent this morning following the announcement.
