Warehouse REIT acquires industrial estate in Milton Keynes

Real estate investment trust Warehouse REIT has acquired Granby Industrial Estate in Milton Keynes for £17.5m.

Warehouse REIT said on Monday that Granby benefitted from "a highly prominent position" opposite two of Milton Keynes' most popular leisure destinations, MK Dons Football Stadium and MK1 Shopping Park.

The ten-acre estate covers 147,000 square foot of gross lettable area which was let to 16 tenants, across 19 of the 24 units, with occupiers including Toolstation, Sally Salon and an NHS Foundation Trust.

The AIM-listed group, which highlighted that the acquisition reflected a net initial yield of 5.7%, added that following the transaction, it will have "substantially deployed" the proceeds of its £153.0m equity raise back in July.

Andrew Bird, managing director of investment advisor Tilstone Partners, said: "This acquisition is a strong fit with the company's strategy of buying in strong economically relevant locations with asset management opportunities; it offers both long-dated day one income whilst an element of vacancy, shorter leases and un-refurbished units provide the chance to capture the reversionary potential and significantly improve the rental profile."

As of 1345 GMT, Warehouse REIT shares were down 0.43% at 116.0p.