Warehouse REIT acquires 68,000 square foot industrial estate in Cambridge

Industrial real estate investor Warehouse REIT has increased its exposure to the Oxford/Cambridge arc with a £20.0m acquisition.

Warehouse REIT said on Tuesday that it had snapped up Cambridge South Industrial Estate, comprising 68,000 square feet of newly built multi-let industrial units and an adjacent development site, located on the wider Dales Manor Business Park, just seven miles south of Cambridge city centre.

The AIM-listed group noted that the purchase price of £20.15m reflected a net initial yield of 4.15% on the apportioned price for the completed buildings.

Warehouse REIT stated the property offered "an attractive mix" of strong day one income and the longer-term opportunity to add value through ground up development, benefitting from the chronic supply/demand imbalance of modern industrial space in Cambridge.

Managing director of Tilstone Partners, Warehouse REIT's investment adviser, Andrew Bird, said: "This is a rare opportunity to acquire a modern, multi-let warehouse estate in one of the UK's fastest-growing business and employment hubs, with additional development land allowing the company to pursue ongoing discussions with potential users, with a view to securing pre-lets that will deliver enhanced returns over and above the built stock.

"Leveraging the strength of our counterparty relationships, this acquisition followed a very limited and selective marketing campaign and fits well with Warehouse REIT's strategy of acquiring a mix of strong existing income, near term lease events allowing the Company to capture the reversion as well as longer-term development and asset management opportunities."

As of 0930 BST, Warehouse REIT shares were up 0.30% at 135.60p.