Warehouse REIT snaps up industrial unit on M62

Specialist investor Warehouse REIT has acquired a 53,000 square foot single-let industrial unit in West Yorkshire just days after raising £76.48m-worth of equity.

Warehouse REIT snapped up the Wakefield property for £4.2m on Monday, reflecting a net initial yield of 6.3%.

The AIM-listed firm's newly acquired unit, set within Wakefield 41 industrial estate, was acquired from Stapleton's Tyre Services, one of the UK's largest distributors of passenger cars and 4x4 and van tyres and the property's tenant.

Warehouse REIT and Stapleton's agreed to a new 15-year lease, generating £281,000 per annum, with rent reviews and tenant only break options after five and ten years.

The warehouse serves as Stapleton's key northern distribution hub, serving over 1,000 garages and stores in Yorkshire and Lincolnshire.

Andrew Bird of Warehouse REIT's external manager, Tilstone Partners, said: "The Stapleton's unit in Wakefield satisfies a long-standing requirement to bolster our holding on the M62, which is increasingly becoming an important location for e-commerce and traditional logistics operators.

"Following the successful share issue announced on Friday, which provides us with over £120m to deploy, it is pleasing to be able to immediately deliver on this acquisition, whilst the substantial remaining capital means we are now in a position to accelerate delivery of our near term pipeline and significantly scale the portfolio."

As of 1020 GMT, Warehouse REIT shares had picked up 1.41% to 161.75p.