Warehouse REIT has acquired a 66,000 sq ft warehouse in Plymouth from a client of BMO Global Asset Management, for £4.3 million.
The entire warehouse is let on a 25 year lease, with over three years to expiry, at a low passing rent of just over £5 psf. The tenant has subsequently fully sublet the space to two occupiers, an automotive preparation and storage firm and a global lubricant solutions provider, with the rent on the majority of the unit being sublet at c. £5.50 psf.
Warehouse REIT has invested over £145 million in its pipeline of warehouse assets following its admission to AIM in September 2017. Neil Kirton, non-executive chairman, said: “Occupier demand for good quality industrial premises that are close to major conurbations continues to grow, and we retain a strong level of confidence in the outlook for the UK urban warehouse sector for the foreseeable future, driven by strong underlying fundamentals.”