The purchase, which is in addition to the £108.85 million 27-asset Tilstone Portfolio, represents a net initial yield of 7.5 percent.
Located in the Midlands, the South East and the North West, in either urban areas or strategic infrastructure hubs, the properties span a combined 603,000 square feet and generate £2.11 million in net annual rent.
According to Warehouse REIT, the portfolio is targeting a yield of 5.5 percent for the year ending March 31 2019, with a total return of 10 percent through dividends and net asset value growth.
The purchase is in line with Warehouse REIT’s strategy of investing in good-quality, well-located assets with opportunities to add value.
Neil Kirton, non-executive chairman of Warehouse REIT, said: “Whilst the vendor has run a successful letting campaign with voids down to 9 percent of estimated rental value, this reflects slightly more than the national average, which is characterised by a shortage of well-located warehouse stock, driven by the structural shifts taking place in last-mile delivery.”