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

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.