Warehouse REIT adds to Milton Keynes empire with £62m buy
Warehouse REIT has spent £62m on an industrial estate in Milton Keynes, Buckinghamshire.
The AIM-listed last-mile specialist said the deal to buy Bradwell Abbey Industrial Estate, at a net initial yield of 4%, was a continuation of its “stated aim of acquiring assets in the Oxford-Cambridge Arc”.
The multi-let industrial estate, which lies just off the A5, totals 335,000 sq ft across 69 units ranging from 1,000 sq ft to 15,000 sq ft. It is 96% let to occupiers including Argos, F&F Stores and Taylor Kerr Engineering and produces annual rent of £2.6m.
Warehouse REIT has spent £62m on an industrial estate in Milton Keynes, Buckinghamshire.
The AIM-listed last-mile specialist said the deal to buy Bradwell Abbey Industrial Estate, at a net initial yield of 4%, was a continuation of its “stated aim of acquiring assets in the Oxford-Cambridge Arc”.
The multi-let industrial estate, which lies just off the A5, totals 335,000 sq ft across 69 units ranging from 1,000 sq ft to 15,000 sq ft. It is 96% let to occupiers including Argos, F&F Stores and Taylor Kerr Engineering and produces annual rent of £2.6m.
Warehouse REIT said the low average rent of £7.80 per sq ft offered good reversionary potential, considering prime rents in the area range from £10 to £14 per sq ft.
Andrew Bird, managing director of the REIT’s investment adviser, Tilstone Partners, said: “This acquisition, located in one of Warehouse REIT’s favoured locations, provides clear opportunities to generate upside through strategic capital expenditure and working with the existing occupiers. We intend to refurbish units as they become available, improving the estate’s sustainability credentials, enabling us to capture new rental levels which will help drive future rents across the estate and strengthen the covenant profile.
Warehouse REIT considers Milton Keynes to be “central” to its stated aim of increasing its holding in the Arc. Following the acquisition, more than 20% of the REIT’s portfolio is in the Arc, which will increase further on completion of two ongoing development projects in the Oxford and Cambridge areas.
View highest and average industrial rents in Milton Keynes >>
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