Warehouse REIT PLC to raise £49.5mln to meet e-commerce boom
Since July, the trust has made £162mln worth of acquisitions and has a pipeline of possible other sites worth £263mln
Warehouse REIT PLC (LON:WHR) is to raise £49.5mln to buy more industrial sites as the demand for e-commerce and fulfilment space booms sparked by homeworking during the coronavirus (COVID-19) pandemic.
The AIM-listed group is issuing the shares at 121p compared to a closing market price last night of 126p.
Warehouse REIT added the change to business practices brought on by the impact of COVID-19 is driving demand for new warehouse space from an increasingly diversified base of occupiers.
The need for last-mile logistics space to allow businesses to rationalise their supply chains and serve customers is especially strong, it said.
Since July, Warehouse REIT has made £162mln worth of acquisitions and has a pipeline of possible other sites worth £263mln.
Alongside the placing, the group announced the acquisition of two distribution sites in Harlow for £13.9mln, with two other under offer for £43.5mln.
The new units in Harlow are being acquired on a net initial yield of 8.6%, said the trust, with the two warehouse units under offer being bought on a yield of 5.6%.
In a statement, Andrew Bird, managing director of the trust’s adviser Tilstone Partners said: “We are seeing unprecedented demand for modern, fit-for purpose warehouse space in economically relevant locations, underpinned by e-commerce growth which has accelerated as businesses of all size look to adapt and future proof their operations.“
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