April 5, 2019
The logistics-focused REIT made a 21% profit on the sale. The warehouse was originally bought in September 2017 as part of a portfolio.
The company has also bought a 26,478 sq ft warehouse in Thatcham for £3.4m, leasing the facility for five years to DHL’s UK Mail, which uses it as a last mile strategic hub and a key part of its distribution network. The purchase price represents a net initial yield of 5.9% with reversionary potential of c.7.0% from its current £7.97 per sq ft, driven by increasing demand for distribution assets serving Reading, Henley and Newbury.
Richard Moffitt, chief executive, said: “The Nuneaton disposal has realised a strong return for shareholders and we are pleased to have rapidly reinvested the proceeds into a well-located, institutional-grade distribution site let to a high-quality tenant. We remain opportunistically acquisitive, focusing on assets that serve the ‘last mile’ needs of a diverse tenant base, especially those responding to the challenges of e-commerce and supply chain constraints.”