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Warehouse REIT (WHR), a leading investor in multi-let warehouses, has announced the completion of the sale of £57.5 million worth of single-let assets in three separate transactions. The combined sales price aligns with the 31 March 2024 valuation and represents a net yield on passing rent of 5.8%.
These transactions are a significant milestone in the company's ongoing deleveraging plan, bringing total sales since the plan was announced in November 2022 to £165.2 million.
Details of the Transactions
The recent sales include:
- Barlborough Links in Chesterfield: Sold for £46.0 million.
- Parkway Industrial Estate in Plymouth: Sold for £6.3 million.
- Celtic Business Park in Newport: Sold for £5.2 million.
These strategic sales have enabled Warehouse REIT to shift its portfolio focus more towards multi-let assets, increasing its multi-let weighting from approximately 70% as of 30 September 2023 to around 77% on a pro forma basis.
Strategic Focus on Multi-Let Warehouses
The increase in multi-let weighting aligns with Warehouse REIT's strategic emphasis on the multi-let warehouse asset class. This segment of the market can accommodate a broader range of occupiers at various stages of their life cycles, offering faster access to rental reversion due to the frequency of lease events.
"Focusing on multi-let warehouses allows us to better meet the needs of a diverse occupier base and take advantage of rental growth opportunities more quickly," said a spokesperson for Warehouse REIT. "These sales are a key part of our strategy to enhance the quality and performance of our portfolio."
Continued Commitment to Radway Green Development
Despite the asset sales, Warehouse REIT remains committed to extracting value from its development site at Radway Green in Crewe. Negotiations for the site are progressing well, indicating potential future growth and development opportunities for the company.
Upcoming Financial Results Announcement
Warehouse REIT is set to announce its full-year results for the period ending 31 March 2024 on Tuesday, 25 June 2024. Investors and stakeholders are keenly anticipating this announcement, which will provide further insights into the company's financial performance and strategic direction.
