Warehouse REIT swoops for Milton Keynes estate

Warehouse REIT has acquired the 10-acre Granby Industrial Estate in Milton Keynes for £17.5m. The deal reflects a net initial yield of 5.7%. The estate compromises 24 warehouse and trade counter units totalling 147,000 sq ft. The warehouses vary in size between 1,600 sq ft and 28,000sq ft. Tenants include Toolstation, Sally Salon and an NHS foundation trust. The asset generates a total rental income of £1.1m per annum, equating to a low average rent of £7.20 per sq ft. The deal means that the REIT will have “substantially deployed” cash raised from its £153m equity raise in July. Since April, it has struck deals with a combined value of £152m, bringing in £9.2m of annual rent income. Andrew Bird, managing director of Warehouse REIT investment adviser Tilstone Partners, said the transaction establishes the company’s footprint in Milton Keynes, “one of the UK’s premier logistics hubs due to its unrivalled connectivity in the heart of the UK growth corridor”. To send feedback, e-mail lucy.alderson@egi.co.uk or tweet @LucyAJourno or @estatesgazette Photo from Warehouse REIT