Warehouse REIT acquires two sites in Harlow

Real estate investment trust Warehouse REIT has acquired two adjacent distribution warehouses in Harlow.

Warehouse REIT said on Friday that the two sites, located in the established Templefields industrial area, total 177,000 square feet and were snapped up for £13.9m including costs, reflecting a net initial yield of 8.6%.

The AIM-listed group highlighted that the warehouses generate £1.2m of contracted rent per year, which equates to a low passing rent of £6.72 per square foot and offers "significant potential" for rental growth.

Separately, Warehouse REIT announced a placing of up to 37.93m new ordinary shares at 121.0p each as part of an effort to finance the acquisition.

As of 0855 GMT, Warehouse REIT shares were down 1.97% at 123.52p.