Warehouse REIT completes four new lettings
Warehouse REIT, the AIM-listed company that invests in e-commerce urban and last-mile industrial warehouse assets in the UK, has completed four long-term lettings at Rugby, Milton Keynes, Doncaster, and the Isle of Wight totalling 121,400 sq ft.
At Valley Point, Rugby (pictured) the company has completed a 38,600 sq ft lease for 20 years with no break to PWR Europe, a leading developer and manufacturer of cooling solutions, supplying a range of sectors such as motorsport, renewable energy, and aerospace.
The unit will serve as its new European headquarters. The lease will generate a contracted rent of £332,400 per annum.
The property is located on the Swift Valley Industrial Estate, a prime West Midlands industrial hub within the UK's 'Golden Triangle', and benefits from access to the M6 (J1) and the M1 (J19) in under ten minutes.
And at Unit 1, Granby Trade Park, Milton Keynes, the company has concluded a 20,200 sq ft lease for 10 years to Superbike Factory Ltd, a large motorbike retailer.
Serving as the tenant's first dedicated outlet in the south east, the unit will be used primarily to facilitate its "click and collect" sales, illustrating the attractiveness of Milton Keynes, the UK's fastest growing city, as a location at the centre of the Oxford-Cambridge arc.
The lease will generate a contracted rent of £201,800 per annum.
The lettings bring the company's portfolio occupancy to 93.3 per cent.
Paul Makin, Investment Director of Tilstone Partners Ltd, the investment advisor to Warehouse REIT, said: "As our continued strong leasing activity demonstrates, the UK warehouse occupier market remains in robust health, reflecting the breadth of tenant demand in a market beset by structural undersupply.
"Where rents remain affordable, particularly in the regions where the company's portfolio is concentrated, there is no sign of this supply-demand imbalance easing.
"In particular, we are increasingly seeing properties with the highest sustainability credentials experiencing strong demand and potentially starting to command rental premiums, as businesses accelerate their own green agendas.
"The company has a near-term pipeline of similar value-add initiatives which will enhance the portfolio income profile whilst further reducing vacancy."