Warehouse REIT finalises acquisition of Plymouth asset

The warehouse, located on a 3.9 acre site in Devon and benefiting from close proximity to the A38 between Cornwall and Mansfield, was completed at a price that reflects an initial net yield of 7.4%.

An automotive preparation and storage firm and a global lubricant solutions provider occupied part of the warehouse at the time of purchase, with retailer Next set to take up space with a home and garden store on the site in 2018.

With its 25-year lease and low passing rent of £5 per square foot (psf), the existing tenants sublet each site at an average of £5.50psf, offering a "good revisionary potential" when the time came for a new lease head agreement.

Neil Kirton, non-executive chairman of Warehouse REIT, said: "Occupier demand for good quality industrial premises that are close to major conurbations continues to grow, and we retain a strong level of confidence in the outlook for the UK urban warehouse sector for the foreseeable future, driven by strong underlying fundamentals.

"We have an identified pipeline of assets across the UK offering a combination of attractive income and capital growth, as we maintain our focus on building a market-leading portfolio of Tier 3 warehouses and delivering attractive returns to shareholders," he added.

As of 0915 GMT, shares had slipped 0.25% to 101.74p.