Warehouse REIT, known for its investment in multi-let industrial warehouses, has successfully completed the sale of two properties, achieving a total of £13.4 million. This sum surpasses the assets’ book value as of September 2023 by 3.7%, with the sales reflecting an average net initial yield of 5.3%.

The properties sold include the Warrington South Industrial Estate, a substantial single-let space of 106,000 square feet, purchased in 2019 and secured with a ten-year lease renewal in 2020, which fetched £11.6 million. Additionally, the Pellon Lane asset in Halifax, encompassing 20,000 square feet and acquired in 2017, brought in £1.8 million. Since April 2023, Warehouse REIT’s total asset sales have reached £53.0 million, aligning with the company’s strategy to optimise its capital structure.

The proceeds from these sales are earmarked for debt reduction, aiming to bolster future earnings. Simon Hope of Warehouse REIT highlighted the strategy of capitalising on low-yielding assets or those where the company’s business objectives have been met as central to strengthening the balance sheet and improving earnings.

Despite a general slowdown in the investment market, Warehouse REIT has managed to identify and leverage demand, selling assets above their book value. This strategy not only realises value for its shareholders but also allows the company to increase its focus on multi-let assets, which are seen as offering the best opportunities for growth.

Warehouse REIT continues to focus on providing flexible warehouse solutions across the UK, catering to a diverse range of occupiers and investing in assets with potential for growth. Sustainability and proactive asset management remain core to the company’s strategy, aiming for long-term returns for investors and a robust portfolio that meets the evolving needs of its clients.

For more information on Warehouse REIT and its investment approach, visit their website or contact their team through FTI Consulting for enquiries.